Economic growth, consumer confidence and low mortgage interest rates are the three factors pushing BC real estate demand to highs not seen since before the 2008 recession, according to the British Columbia Real Estate Association (BCREA).
In its second-quarter housing market outlook published June 1, the BCREA said it expected residential sales in the province to rise 12 per cent to 94,300 units this year, after climbing 15 per cent to 84,000 in 2014, and then edge back nearly 3 per cent to 91,600 units in 2016.
The association said this will be the first year since 2007 that BC home sales will surpass the 10-year average, although it will not surpass the record 106,300 BC homes sold on the MLS® in 2005.
The report said: “While many parts of Canada are struggling with the aftershock of falling oil prices, the BC economy is in the enviable position of being a growth leader. Household spending is on an upswing, reinvigorating the provincial housing market.”
The average resale home price in the province is forecast to increase 7.4 per cent to $610,500 this year, and a further 1.7 per cent to $621,000 in 2016.
In Vancouver, MLS® home sales are forecast to rise nearly 17 per cent to 39,400 units this year, before falling 4.6 per cent to 37,600 units in 2016.
The average MLS® residential price is forecast to increase 7 per cent to $870,000 this year and a further 3 per cent to $898,000 in 2016, largely because of the continued rise of detached home prices.
To read the full report, click here.
