B.C. housing prices forecast to stay high despite moderating demand: BCREA

Experts predict that residential sales will dip by 8.6 per cent – or 94,855 units – in 2018

B.C. real estate experts are predicting vulnerable tides in the year ahead as rising interest rates are set to impact homeowners across the province.

In the BC Real Estate Association’s first-quarter housing forecast for 2018, released Friday, experts predict that residential sales will dip by 8.6 per cent – or 94,855 units per year.

Still, that leaves B.C.’s housing sales well above the province’s 10-year average of about 84,000 units annually.

Unsurprisingly, analysts are pointing to slower economic growth, tougher mortgage qualification rules in addition to increasing interest rates as some of the main factors in the slowing stats.

Association chief economist Cameron Muir said this means housing demand will moderate this year, with no sign of bouncing back into 2019.

By the numbers, about 60,000 homes are under construction across the province, well above the previous peak of 45,000 units for the same time period recorded in 2008, as builders continue to react to the lack of supply.

In Metro Vancouver alone, 2,000 units are in the pipeline, 56 per cent more than recorded in 2008, the association said.

But despite that – and the five-year-qualifying rate forecast to rise 35 basis points by the end of 2018, and another 21 basis points by the end of 2019 – prices are still set to continue increasing.

The association estimates that the average price of a home is to increase six per cent to $752,000 this year, and a further four per cent to $781,800 in 2019.

Just Posted

Inquest scheduled into death of man in prison for gang-related killing

Gurwinder Mann, 39, died in Abbotsford while serving life sentence

Incident involves border runners, car crash and backpacks with suspected meth

Man arrested after ruckus in Sumas and Abbotsford on Thursday night

PHOTOS: The Nutcracker comes to Mission

Fraser Valley Academy of Dance presented The Nutcracker at the Clarke Theatre on Saturday

Mission Secondary presents comedy play Arsenic and Old Lace

Farcical murder mystery is full of gripping plot twists and surprises

PHOTOS: Mission’s Candlelight Parade

More than 80 floats took part in the annual holiday event in downtown Mission

VIDEO: Close encounter with a whale near Canada-U.S border

Ron Gillies had his camera ready when a whale appeared Dec. 7

B.C. Lions hire DeVone Claybrooks as head coach

Former Stampeders DC succeeds CFL legend Wally Buono

France shooting: 2 dead, several wounded in Strasbourg

A world-famous Christmas market was put on lock down on Tuesday

Canadian warship witnesses possible violations of North Korea sanctions

Crew members on HMCS Calgary took photos and collected other information

Christine Sinclair named Canadian Women’s player of the year again

This is the 14th time Sinclair has been named player of the year

B.C. man wants trapping laws changed after dog killed

Louis Seguin’s 10-month-old Australian shepherd died in a body-gripping trap last month

Nearly 8,000 homeless in B.C., first province-wide count reveals

Twenty-four seperate counts in B.C. cities found there are thousands of homeless in all corners of province

White Rock to allow dogs on promenade

Plans for a one-year pilot program would continue to ban canines on waterfront from May to August

Most Read