B.C. real estate group predicts dip in home sales, not in prices in 2018

Association estimates residential home sales in B.C. will go down 10.4 per cent

New mortgage qualifications and potentially higher interest rates will temper the housing market in 2018, but won’t do much to reduce housing prices, the B.C. Real Estate Association predicts.

The organization released its 2017 Fourth Quarter Housing Forecast on Tuesday, estimating a 10.4-per-cent decline in residential sales across B.C. next year. That follows an expected 8.8-per-cent drop by the end of 2017.

The numbers also show estimated home sales in 2018 are expected to dip to 91,700 units, according to the association, compared to a record-breaking 112,000 units sold in 2016.

But while the number of home sales will slow, the association’s chief economist Cameron Muir said he does not expect prices to ease up because of mortgage qualification changes set to take effect in January.

READ MORE: Here’s how mortgage requirements will change come January

“A rising interest rate environment combined with more stringent mortgage stress tests will reduce household purchasing power and erode housing affordability,” Muir said in a news release.

The imbalance between supply and demand has been largely responsible for rapidly rising home prices, Muir said, and the combination of weakening consumer demand and a surge in new home completions may induce a more balanced market condition.

Still, the average price of a home in B.C. is forecast to go up 3.1 per cent to $712,300 this year, and a further 4.6 per cent to $745,300 in 2018.

“Given the rapid rise in home prices over the past few years, the effect of these factors will likely be magnified,” Muir said.


@ashwadhwani
ashley.wadhwani@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Virtual film industry career fair offers chance to talk with the experts

Experts in 11 different departments, three film union representative will be in attendance

Sooke and T’Sou’ke Nation receive financial boost for projects

Provincial, federal governments invest millions towards Greater Victoria infrastructure

Oak Bay officer injured while breaking up party

Party-goers yell ‘f*** the blue,’ say police

Victoria police looking for information after man assaulted with weapon

VicPD called to Centennial Square after man found with potentially life-threatening injuries

UVic research team creating virus-resistant washbasins for post-pandemic world

Civil engineer Rishi Gupta hopes basins will be installed in public spaces

B.C. accommodators need phone lines to light up as in-province travel given green light

Travel restrictions during the COVID-19 pandemic have decimated the tourism and hospitality industries

Indigenous B.C. tour operator keeps culture alive through virtual journeys in COVID-19 era

Campbell River based Homalco Tours is also setting up live cameras for bear viewing in Orford

Broadway veteran Nick Cordero dies from coronavirus complications

During Cordero’s hospitalization, Kloots sent him daily videos of her and their 1-year-old son, Elvis,

Northern communities welcome tourists as province opens to in-B.C. travellers

Officials have asked British Columbians to be careful as they travel this summer

300 Cache Creek residents on evacuation alert due to flood risk as river rises

Heavy rainfall on Canada Day has river rising steadily, threatening 175 properties

First glimpse of Canada’s true COVID-19 infection rate expected mid-July

At least 105,000 Canadians have tested positive for COVID-19 since the coronavirus was identified

Annual music event in Comox Valley celebrates online instead

Vancouver Island MusicFest holds virtual celebration set for July 10

Most Read