Home sales in B.C. are expected to fall overall this year but will see a significant increase in 2013, according to a B.C. Real Estate Association (BCREA) report issued Friday.
The BCREA’s 2012 Fourth Quarter Housing Forecast stated that 2012 sales are forecasted to decline by 9.8% to 69,200 units, compared with 2011. But it forecasts that this will be followed by an increase of 8.3% in 2013, with expected sales of 74,920 units.
“Despite stronger consumer demand in the Interior, B.C. home sales will fall short of last year’s total,” said BCREA chief economist Cameron Muir.
“A moderating trend in Vancouver has recently been exacerbated by tighter high-ratio mortgage regulation. The resulting decline in purchasing power has squeezed some potential buyers out of the market.
“However, strong full-time employment growth, persistently low mortgage interest rates and an expanding population base point to more robust consumer demand in 2013.”
Muir went on to say that the Lower Mainland’s share of B.C.’s 2012 home sales is expected to decline to 57% of the province’s total sales, compared with 62% in 2011.
The report stated that the average number of home sales over the past 15 years is 79,000 units per year, with a record 106,300 sales in 2005.
