Home sales across Greater Vancouver are expected to drop 8.2% this year after declining 10.5% in 2017, according to a new housing forecast from the British Columbia Real Estate Association (BCREA).
The BCREA forecasts around 33,600 units sales will take place this year across the region, down from 36,604 last year. The downward trend is expected to reverse next year, with an expected increase of 1.2% in 2019, to 34,000 unit sales.
Across British Columbia as a whole, the BCREA expects sales to drop 8.6% this year, to 94,855 units, with a further 0.9% drop to 94,025 units in 2019.
According to the forecast, although the province has seen strong economic performance over the past year, other factors will come into play, keeping sales low.
“Low unemployment and tepid labour force growth is expected to slow economic expansion over the next two years,” it said in the forecast.
“Housing headwinds of tighter mortgage qualification rules, a rising interest rate environment, an already elevated price level and B.C. government policy efforts to tamp down demand will also contribute to slower consumer demand through 2019.”
Prices are still expected to increase across both Greater Vancouver and B.C., however. This year, the BCREA forecasts the average price listed on the Multiple Listing Service for all Greater Vancouver homes to be $1,090,000 – up 5.7% compared with $1,031,546 in 2017. A further 3.7% increase is expected in 2019, with prices expected to reach $1,130,000. The average price across B.C. is expected to reach $752,079 in 2018 – an increase of 6% compared with $709,579 in 2017. A further 4% increase is expected in 2019.
@EmmaHampelBIV
