Declines forecast for B.C. housing market

Declines forecast for B.C. housing market

Home prices and sales in B.C. are forecast to decline in 2012, with a small bounce-back in 2013, according to the province’s real estate association.


The British Columbia Real Estate Association (BCREA) released its 2012 Second Quarter Housing Forecast today.


Residential sales are forecast to edge down 2.2 per cent to 74,800 units this year, before increasing 4.9 per cent to 78,500 units in 2013, stated the British Columbia Real Estate Association’s Second Quarter Housing Forecast. Since 2009, annual home sales in the province have hovered in the 74,000 to 78,000 unit range. A record 106,300 residential sales were recorded in 2005.


“Despite a sizable increase in consumer demand in Kamloops, the Okanagan and the North, some moderation in the Metro Vancouver region will pull BC home sales lower this year,” said Cameron Muir, BCREA chief economist. “Persistently low mortgage interest rates are expected to continue to underpin home sales and affordability in the province.”


BCREA is predicted the annual average price in to dip 3.9 per cent to $539,400 this year, and increase 1.4 per cent to $547,000 in 2013.