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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Conservation Officers seek public assistance

A mule deer buck was poached within Elkford town limits

Annual Elk Valley Pride Festival paints the town rainbow

Festivities began with a spirited Pride Bike Parade and flag raising ceremony

City of Fernie installs new railway safety decals

Part of Rail Safety Week, the initiative promotes railway safety at one of Fernie’s busy crossings

MP Morrison faults federal Throne Speech as new Parliament session begins

Kootenay-Columbia representative criticizes a lack of focus on jobs, support for resource sector

Sparwood’s Business Scarecrow Competition kicks off

All Sparwood businesses are encouraged to get involved in the annual festivity

B.C.’s top doctor thanks supporters after revealing threats over COVID-19 measures

Dr. Bonnie Henry says COVID-19 has caused some people to lash out in anger and frustration out of fear

97 distressed horses, cats and dogs seized from farm in Princeton

RCMP assisted as BC SPCA executed search warrant

West Kootenay mother searching for son missing since Sept. 1

Nelson police are investigating the disappearance of Cory Westcott

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

NDP, Greens divided on pace of child care improvements in B.C. election campaign

NDP Leader John Horgan recommitted to $10-a-day child care and blamed the Greens for not supporting his efforts

Category 2 open burning prohibitions rescinded throughout Southeast Fire Centre

Category 3 open fires, as defined in the Wildfire Regulation, remain prohibited

BC Liberal Leader talks drug addiction in the Lower Mainland

Drug addiction and public safety a top priority says Andrew Wilkinson

Pandemic derails CP Holiday Train

Canadian Pacific will work to get donations to food banks while also producing an online music concert

Interior Health reports five new COVID-19 cases

Across the region, 34 cases are active

Most Read