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

City council won’t accept more than a two-per-cent tax increase

Financial plan amendment bylaw fails on first reading in 5-4 vote

Nanaimo buses first to get new technology

NextRide technology will help riders pinpoint where buses are and predicted arrival times

UPDATE: Police rule out alcohol, distraction in fatal crash in Nanoose

Passenger of fatal crash still in critical condition following crash in Nanoose Bay on Friday

Nanaimo plays hockey in support of Humboldt

Humboldt Strong Street Hockey Tournament held Sunday, April 22 at Nanaimo North Town Centre

Nanaimo paramedics part of Team Canada

Team will travel to Czech Republic next month for international competition

Nanaimo paramedics part of Team Canada

Team will travel to Czech Republic next month for international competition

Turning vehicles into deadly weapons is easy and cheap, expert says

Not all recent vehicle attacks have been linked to terror groups, says Candyce Kelshall

Canada not properly managing fish farms, environment commissioner says

Better standards are in place in British Columbia, meaning less fish have escaped, reports show

B.C. to give municipalities final say over rental zoning

City halls will be required to provide housing needs assessment

B.C. firm linked to Facebook data scandal defends its political work

AggregateIQ says it helps customers craft messages for online political ads, use data for campaigns

Toronto van attack accused was briefly in Canadian Armed Forces

Alek Minassian was a member of the forces from Aug. 23, 2017 until Oct. 25

Hospital hero wins international honour for disarming knife wielding man

Charles Kraeling is the first Island Health employee to receive an International Award of Valour

Parents call for change to health laws after Victoria teen’s death

Accidental overdose has Elliot Eurchuk’s parents seeking change to B.C Infants Act

B.C. guitarist aims to play for 116 hours, break Guinness record for charity

Local musician will aim to break Guinness record at River Rock Casino Resort, starting May 7

Most Read