Results from the bank's annual Canadian home ownership survey indicate B.C.'s market -- after a phenomenal run that lasted most of the 1990s -- will return to pre-boom years of modest sales increases while prices face downward pressure.

"The difference between B.C. and Alberta is like night and day," said Bruce Jones, Royal Bank's vice-president of personal financial services in Vancouver.

"What we're witnessing in B.C. is a return to the days when housing was seen primarily as accommodation and a longer-term investment -- which is a good thing."

Housing economist Carlos Leitao noted that of all the provinces, B.C. is the one most affected by the current volatility in Asia, which indirectly affects consumer confidence and home-buying intentions in Canada.

The positive side to the survey is that housing affordability in B.C. continues to improve, although the province still boasts the highest average house prices in the country -- $212,600 -- far outdistancing second-place Ontario ($161,200) and Alberta ($121,000).

In Greater Vancouver, an average home costs $285,500, compared with $221,400 in Toronto, and $152,000 in Calgary.

Conducted by the Vancouver-based Angus Reid Group, the bank's Dec. 1-8 survey found 21 per cent of Canadians expect to purchase a home during the next two years, down from 28 per cent a year ago.

In B.C., only eight per cent of respondents said they were very likely to buy, down from 13 per cent a year ago.

Nationally, home-buying intentions are strongest among respondents aged 25 to 34 [18 per cent] and 35 to 44 [17 per cent].

Results by city shows 20 per cent in Toronto are very likely to buy over the next two years, followed by Edmonton at 16 per cent, Calgary at 14 per cent and Vancouver at eight per cent.

And next time British Columbians go house hunting, 41 per cent intend to buy a less expensive home. Results were nearly identical when only Vancouver residents were questioned.

Among other B.C. findings:

- 52 per cent of respondents would buy a resale unit, compared with 42 per cent who prefer a newly built home. The average B.C. resident took just under four years to save up for a downpayment.

- 56 per cent favour either a detached or semi-detached type of dwelling, with 18 per cent -- the highest in the country -- saying they will buy a condominium next time out.

- 52 per cent said they are paying down their mortgage faster than their scheduled payment, taking advantage of low interest rates. The typical B.C. homeowner expects to be mortgage-free in 11 more years.

- 20 per cent feel their homes are a "very good" investment, while another 58 per cent consider them a "good" investment.

- 34 per cent said they would receive a very good return on their home if they were to sell tomorrow, while 33 per cent expect a fairly good return and 14 per cent a minimal return. Four per cent said they would probably suffer a loss.

Nationally for 1998, Royal Bank predicts modest increases in resales and housing starts, with 175,000 starts predicted for this year, compared with about 150,000 in 1997 and 124,000 in 1996.

For B.C., the bank expects 30,000 new starts this year, rising to 31,700 in 1999, compared with 28,000 in 1997.

The bank's survey was based on interviews with more than 1,500 Canadians, including 300 from B.C.

With samplings this size, the national survey results have a margin of error of plus or minus 2.5 per cent, while the B.C. survey's margin is plus or minus 5.6 per cent. Both are considered accurate 19 times out of 20.