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

Matthew Campbell, director of the Fraser Valley Regional Food Bank, stands amongst a large amount of non-perishable food and household items being stored inside the Pacific Community Church. This year’s ‘Halloween For Hunger’ food drive, put on by students at Clayton Heights, will go to benefit the Fraser Valley Regional Food Bank. (Photo: Malin Jordan)
Clayton Heights Secondary kicks off annual ‘Halloween for Hunger’ event

Students to collect much-needed items for food bank

Left, Rowena Leivo early on in her volunteer career with the South Surrey/White Rock Food Bank. Right, Leivo in the food bank Tuesday. (Contributed photos)
After 34 years, ‘The Boss’ retires from South Surrey Food Bank volunteer gig

Rowena Leivo, 90, spent a third of her life volunteering at the food bank

Ali Watson in Arts Club Theatre Company’s production of “No Child…,” which plays until Nov. 8. (photo: Moonrider Productions)
Viewers of Arts Club’s streaming plays support Surrey Civic Theatres

Company’s ‘bubble method’ of theatre production means just 50 in-person tickets for each performance

John Horgan brought the NDP campaign to Langley on Wednesday, Oct. 21, just three days before the B.C. vote (Matthew Claxton/Langley Advance Times)
Horgan brings NDP campaign to Langley

Predicts gains, says people are looking at the party ‘differently’ after three years

Surrey provincial court. (File photo: Tom Zytaruk)
OUR VIEW: Lenient courts aren’t helping

It’s hard to fault the palpable frustration of Metro Vancouver Transit Police

Provincial health officer Dr. Bonnie Henry presents modelling of COVID-19 spread in B.C., March 25, 2020. (B.C. government photo)
B.C. sets another COVID-19 record with 203 new cases

up to 1,766 active cases in B.C., two more deaths

RCMP. (Phil McLachlan - Black Press Media)
British Columbia man dies during ski trip near glacier west of Calgary

Kananaskis Public Safety and Alpine Helicopters responded around 2:30 p.m.

Prime Minister Justin Trudeau arrives on Parliament Hill in Ottawa on Monday, Oct. 19, 2020, following a week-long break for the House of Commons. THE CANADIAN PRESS/Sean Kilpatrick
One crisis after another for Trudeau since last federal election one year ago

It has been a year of unprecedented calamity and crisis

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

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Rio Tinto Alcan’s aluminum smelter at Kitimat competes against producers in the Middle East and Russia that have no carbon tax. (Rio Tinto)
B.C. carbon tax highest in Canada, export industries unprotected

B.C. NDP, B.C. Liberals say they’re looking at exemptions

In this file photo, snow is seen falling along the Coquihalla Highway. (Liam Harrap/Revelstoke Review)
Weather statement issued for Coquihalla, Hwy 3, as arctic front approaches

The early season snowfall expected to hit Fraser Valley, Friday, Oct. 23

(Pixabay)
Vancouver teacher suspended after swearing, touching students and complimenting underwear

McCabe touched students, including rubbing their backs and necks, touching their hair and hugging them

Most Read