Last Updated: Wednesday, February 4, 2009 | 10:03 AM PT
The average price of a home in British Columbia is forecast to drop 13 per cent to $396,600 in 2009, according to the B.C. Real Estate Association.
"The global financial crisis and worldwide recession will continue to take their toll on the B.C. economy this year," said Cameron Muir, the association's chief economist.
"World events have pulled Canada and B.C. into a recession, where concern for job security and declining net worth are keeping many potential homebuyers on the sidelines."
The overall residential benchmark price of a typical home in Greater Vancouver declined 10.9 per cent to $489,007 between January 2008 and 2009, the Real Estate Board of Greater Vancouver reported on Tuesday.
In Greater Vancouver, sales of detached, attached and apartment properties declined 58.1 per cent in January 2009 to 762, down from the 1,819 sales the same year-before month.
With prices falling, the number of homes for sale in Greater Vancouver was also declining. New listings also were down 20.9 per cent to 3,700 in January 2009 compared to the same month in 2008, when 4,675 new units were listed.
The good news is 2010 is officially forecast to be a year of stabilization in the economy and the housing market, and Muir predicted home prices in the province would be relatively stable.