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

Weekend commuter bus from Cowichan to Victoria sees success in first year

It’s been a case of “use and it and it might expand”… Continue reading

John murder trial at Duncan courthouse on pause until spring

John is charged with the May 2016 murder of 20-year-old Derek Descoteau

Business notes: Spade Excavating rides to the rescue of Malahat Legion

Kudos to a Shawnigan Lake business for coming to the rescue when… Continue reading

Thanks but no thanks: CVRD opts out of Meade Creek solar study grant

Meade Creek solar photovoltaic feasibility study was awarded an $11,000 grant

Man caught on camera allegedly trying to defraud ICBC

Auto-insurer warns B.C. drivers to record info after crashes

BCHL’ers blanked by Russia at World Junior A Challenge

Canada West loses battle of the unbeaten teams in the preliminary round

French police try to catch attack suspect dead or alive

Local authorities increase death toll to three, including 13 wounded and five in serious condition

Second Canadian missing in China after questioning by authorities

Michael Spavor, founder of a non-profit that organizes cultural-exchange trips to North Korea, “is presently missing in China”

Cannabis gift ideas for this holiday season

Put the green in happy holidays, now that cannabis is legal in Canada

Warning issued as forecast calls for 20-foot waves in Tofino

Dangerous waves, strong currents and upper-shoreline flooding expected for Tofino-Ucluelet area

An 800-pound pig named Theodore needs a forever home, B.C. society says

‘Theodore is not destined to be somebody’s bacon’

Teenager Alphonso Davies wins Canadian Men’s Soccer Player for the Year Award

Derek Cornelius and Chilliwack native, Jordyn Huitema were named Canadian Youth International Players of the Year

B.C. teen MMA fighter shows heart

Young Unity MMA competitors bring home Ws

Most Read