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

ODD THOUGHTS: Hi, I’m Bob and I’m a news addict

It’s dangerous to be a news junkie is this day and age.

Team BC advancing undefeated in junior nationals

A Langley-based team is 6-0, thus far, at the Canadian curling championships.

Langley serves as backdrop to pair of competing short films

In the 20th annual Crazy8s Film competition, two of six producers will be filming in Langley.

VIDEO: Rivermen back on the ice in Langley tonight

In their game against West Kelowna tonight, Langley’s junior A hockey team gets into action at 7:15.

Louder helicopter partly to blame for rash of complaints in Surrey: RCMP

Police say helicopter training is conducted in Cloverdale because it’s ‘a very practical area where we do a lot of real police work’

VIDEO: Here’s what the B.C. legislature officers are accused of buying

Personal trips, purchases, alcohol and more laid out in 76-page report by Plecas

Men allegedly tied to Red Scorpions gang arrested in B.C. drug busts

Nanaimo RCMP have made multiple arrests and seized drugs, weapons and cash

VIDEO: Soon-to-be-extinct caribou moved to B.C. interior

The three caribou are being held in pens north of Revelstoke

Man pulls over to help injured owl, gets hit by SUV

Chase RCMP say owl flew away while they were on scene

B.C. cop who assaulted homeless man may avoid criminal record

Kamloops RCMP Const. Todd Henderson was charged with one count of assault causing bodily harm

Thunderbirds excited to fly over Fraser Valley at Abbotsford airshow

Members of U.S. Air Force aerial performance troupe visited town to scope out the airfield

Four students sent to hospital after school bus crash in Mission

Mission RCMP say hospitalization a precaution, 14 students were on board

5 to start your day

Court hears South Surrey mother ‘never called 911’ after killing daughter, Four students sent to hospital after school bus crash in Mission and more

Most Read