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BC Home Prices, Sales Will Keep Rising in 2015: Credit 1

Joannah Connolly
January 20, 2015

The BC housing market shows no sign of contracting after its strong 2014, with sales and prices expected to rise again in 2015, according to a Central 1 Credit Union forecast issued January 20.

However, the credit union said that the increases would be “relatively modest, with sales up five per cent compared to 18 per cent last year, while the median provincial home price will climb 2.5 per cent to $414,000.”

The BC Housing Outlook also doesn’t anticipate any price drops any time soon in 2016 or beyond, saying that the growing economy would keep sales on a “positive trend through 2018 with average annual price increases above two per cent.”

“Regional variations will persist over the next few years, particularly given recent gyrations in oil prices,” said Bryan Yu, Central 1 senior economist.

The credit union trade association also predicted that the Bank of Canada would not increase interest rates until early 2016, that the high Vancouver prices will continue to rise due to the lack of developable land, and that northern BC will see even bigger price increases.

“I think sky-high prices in Greater Vancouver have more room to grow with little risk of a significant downturn,” said Yu.

“A key characteristic of the market has been the divergence between detached and multi-family prices. While condo markets have been soft, with median home values flat since 2010, detached values have surged. Single-family housing is increasingly a luxury good detached from income drivers.”

Read the full BC Housing Outlook here.       

Joannah Connolly
Joannah Connolly is editorial director of Glacier Real Estate, Glacier Media's real estate division. Joannah writes and curates real estate news for Glacier Media's local newspaper websites, including the Vancouver Courier, North Shore News, Burnaby Now, Tri-City News and others. She also oversees editorial content in Real Estate Weekly Homes, West Coast Condo, Western Investor and Glacier's special real estate publications. A dual Canadian-British citizen, Joannah has 22 years of journalism and editing experience in Vancouver and London, with a background in construction, architecture, healthcare and business media. Joannah has appeared on major local TV outlets as a real estate commentator, has moderated and spoken on various industry panels, and spent two years hosting the Real Estate Therapist radio show on Roundhouse Radio.