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.

Just Posted

No survivors in Gabriola Island plane crash: RCMP

The Island is located about five kilometres east of Vancouver Island

Striking Western Forest Products workers willing to ‘modify position’ if talks progress

Brian Butler, USW 1-1937 president, says union and WFP to meet in Nanaimo

First Snuneymuxw Fight Night to be held at community gym

Eli Wyse facing Quesnel opponent in main event of boxing card Saturday, Dec. 14

Dogs and cat rescued in house fire in south Nanaimo

Section of Old Victoria Road was closed to traffic Tuesday afternoon

Nanaimo RCMP look for missing man with memory loss and mobility issues

Robert Gillies last seen at coffee shop in Departure Bay

Dogs and cat rescued in house fire in south Nanaimo

Section of Old Victoria Road was closed to traffic Tuesday afternoon

UPDATED: No survivors in Gabriola Island plane crash: RCMP

The Island is located about five kilometres east of Vancouver Island

VIDEO: Harbour Air makes history with first electric aircraft test flight

Successful flight marks first of its kind in the world

Chamber of commerce wants to check out Nanaimo’s best Christmas lights

Residents and businesses asked to submit their addresses by this Wednesday, Dec. 11

Japanese students visit Nanaimo-Ladysmith for cultural exchange

Students from Furukawa Gakuen High School hosted by mid-Island families this past weekend

BC Ferries adds 170 extra sailings for the holidays

6 a.m. and 10 p.m. sailings added for busy season

No injuries reported in five-vehicle pileup in Nanoose Bay

Traffic slowed briefly on Monday afternoon

UPDATE: Electrical short caused motorhome fire

Nanaimo Fire Rescue extinguished blaze Monday afternoon on Esplanade and Irwin Street

The Grinch who Stole a Hedge: Security camera captures Chilliwack tree theft

RCMP arrives as person calmly walks away with tree in downtown area

Most Read