Home sales in British Columbia are set to tumble 8.6% this year, after declining 7.5% in 2017.
In its latest Housing Forecast, the BC Real Estate Association predicts 94,855 home sales in 2018, well below the record of 112,209 of two years’ ago but exceeding the 10-year average of 84,800 units.
Despite some strong economic fundamentals, tighter mortgage conditions and rising interest rates will have a negative impact, the forecast says.
“Housing demand in the province is expected to moderate this year and in 2019,” said Cameron Muir, BCREA Chief Economist. “More stringent mortgage qualifications and rising interest rates will further erode affordability and household purchasing power.”
The average MLS residential price in the province is forecast to increase 6.0% to $752,000 this year, and a further 4.0% to $781,800 in 2019.