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

Nursing graduates coming to work at Comox Valley, Campbell River hospitals

Twenty-two casual and temporary nurses will be hired

Saratoga Speedway celebrates its 50th opening night of racing May 5

In 1968 the central Vancouver Island communities and business came together to… Continue reading

Cumberland May Day Bean Dinner planned

Labour Minister Harry Bains as guest speaker at annual event

Draft plan for Union Bay coal hills remediation to be submitted this spring

West Fraser Mills is paying for the installation of an engineered membrane

Crowdfunding page created for family of Comox Valley man killed in Peru

A GoFundMe page has been created for the family of Sebastian Woodroffe,… Continue reading

VIDEO: B.C. ‘escapologist’ stuns judges on Britain’s Got Talent

Matt Johnson says televised water stunt was closest he’s come to death

Charges follow collisions between pickup and police vehicles in Nanaimo

Majore Jackson, 32, and Andrew John Bellwood, 47, from Nanaimo, face numerous charges

WATCH: Moms Stop The Harm respond to opioid crisis

Someone asked her if she does the work for her son. McBain said: “No, actually. I do it for your son.”

Been a long day? Here’s cute puppies in training

Group is training next batch of assistance dogs at Vancouver International Airport

B.C. skydiver lands safely after cutting away main chute

Greater Victoria emergency services called after witnesses saw spiralling chute

Elderly man who went missing from a BC Ferry still hasn’t been found

Delta Police investigation has deemed incident non-suspicious in nature

78 Mexican farmworkers displaced after fire tears through building on B.C. farm

Flames broke out Thursday morning in building that housed up to 80 workers at Abbotsford farm

Cartoonist captures public mood following Toronto, Humboldt tragedies

Cartoonist said he was trying to find a bit of positivity with an image that has garnered attention

Most Read