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.

Just Posted

National championship tees off Tuesday at Oak Bay’s Victoria Golf Club

Oldest 18-hole course in Canada in its original location hosts Men’s Mid-Amateur Championship

Tesla internship calls for UVic designer of electric ‘Caboost’

Saanich’s Simon Park to test design of his invention at Tesla

New Victoria bus routes bound for airport, Camosun College

Bus routes and schedules are about to change this fall, and two… Continue reading

Police seek vehicle after early morning carjacking in Oak Bay

Stolen car is a 1999 Oldsmobile Alero, license plate FL307T

No new leads in 1992 Guyatt murder case

Newspaper clippings will not lead to the discovery of Shannon Guyatt’s body, says police

Five things to do in Greater Victoria this weekend

Puppy yoga, horses, cars, water guns and more make up this weekend’s list of events to see

New plan to lift more than two million people past the poverty line

Anti-poverty strategy will aim for 50 per cent cut in low-income rates: source

Liberals scrap lottery system for reuniting immigrants with their parents

Lottery for parent sponsorship to be replaced, more applications to be accepted

Another person stabbed at a tent city on Vancouver Island

Incident happened Friday afternoon in Nanaimo; injuries were not severe

Bear kills off-leash dog in B.C. park

There have been nearly 200 pet or livestock and bear encounters so far this year

Trudeau says he won’t apologize to heckler, pledges to call out ‘hate speech’

Prime Minister had accused woman of racism as she shouted about illegal immigration at Quebec rally

Documentary filmed in B.C. nominated in ‘Wildlife Oscars’’

Toad People is the only Canadian film to be nominated in this year’s Panda Wilderness Awards

B.C. man builds 10-foot sign thanking fire responders

Ken Rawson built his “thank u” sign on Saturday as helicopters responded to fires around the province.

Most Read