Greater Vancouver’s total number of MLS® home sales in 2014 is forecast to be 33,800 units by the end of the year, up 16.6 per cent on 2013’s total, according to a British Columbia Real Estate Association (BCREA) forecast released November 18.
The average home price in Greater Vancouver in 2014 is forecast to be $814,000 – up 5.2 per cent compared with $767,765 in 2013.
However, the BCREA expects that sales will increase only 0.6 per cent in 2015 to a total of 34,000 units, and that average prices will rise just 0.1 per cent in 2015 to $815,000.
“Consumer demand has ratcheted up this year and is expected to remain at a more elevated level through 2015,” said Cameron Muir, BCREA’s chief economist.
“Stronger economic conditions are expected to be somewhat offset by higher interest rates later next year, and keep home sales from advancing much further.”
In the Fraser Valley, unit sales are forecast to hit 14,900 in 2014 – a rise of 15.5 per cent year over year. Similarly to Greater Vancouver, sales are then expect to taper off in 2015, forecast to rise by just 2 per cent to 15,200.
MLS® resale prices in the Fraser Valley are forecast to average $517,000 in 2014, a 5.4 per cent year over year rise, and to increase by 1.5 per cent in 2015.
Looking at the province as a whole, home sales in 2014 will total 83,940 units, said the BCREA – a rise of 15 per cent over 2013.
MLS® sales across the province are forecast to increase only a further 1.2 per cent to 84,900 units in 2015.
The average home price in BC is forecast to increase 6 per cent year over year to a record $569,800 for the whole of 2014, and a further 1.2 per cent to $574,300 in 2015.
The forecast comes just a day after BC's October home sales statistics were cited as the driving force behind Canada's upward trend in October.
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