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.