BC Economic and Housing Update.
The forecast for 2007 and beyond is a strong BC economy and a stable housing market as discussed by Cameron Muir, Chief Economist in his seminar May 2007. Housing starts and Condominium inventory will not be enough to satiate demographic demand and prices are set to rise 6 to 9% per year. Renovations are on the rise due to the lack of inventory. The Olympics will only account for 3% of BC economic growth, so the question of what will happen after seems to be answered already....continued stable growth.
BC salaries and economy are rising 2 to 3x the rate of inflation, with the BC economy rising faster than the rest of Canada. Average mortgage rates will remain stable and are down from the average 6 years ago. Real Estate is still the driving force behind net worth with 42% of Personal Assets being held in Real Estate. The only area of major concern is the affordability of mortgage payments given the rise in housing prices.
See : http://www.bcrea.bc.ca/economics/REBGV_WSDivision2007.pdf for complete charts and analysis.