B.C. housing prices forecast to stay high despite moderating demand: BCREA

Experts predict that residential sales will dip by 8.6 per cent – or 94,855 units – in 2018

B.C. real estate experts are predicting vulnerable tides in the year ahead as rising interest rates are set to impact homeowners across the province.

In the BC Real Estate Association’s first-quarter housing forecast for 2018, released Friday, experts predict that residential sales will dip by 8.6 per cent – or 94,855 units per year.

Still, that leaves B.C.’s housing sales well above the province’s 10-year average of about 84,000 units annually.

Unsurprisingly, analysts are pointing to slower economic growth, tougher mortgage qualification rules in addition to increasing interest rates as some of the main factors in the slowing stats.

Association chief economist Cameron Muir said this means housing demand will moderate this year, with no sign of bouncing back into 2019.

By the numbers, about 60,000 homes are under construction across the province, well above the previous peak of 45,000 units for the same time period recorded in 2008, as builders continue to react to the lack of supply.

In Metro Vancouver alone, 2,000 units are in the pipeline, 56 per cent more than recorded in 2008, the association said.

But despite that – and the five-year-qualifying rate forecast to rise 35 basis points by the end of 2018, and another 21 basis points by the end of 2019 – prices are still set to continue increasing.

The association estimates that the average price of a home is to increase six per cent to $752,000 this year, and a further four per cent to $781,800 in 2019.

Just Posted

Retired Gordon Head teacher not ready to ride into the sunset

86-year-old keeping active with marathon paddling trek and week-long cycling tour

Parents grieving teen’s overdose death say it started with opioid prescription

Elliot Eurchuk, 16, died at his Oak Bay home Friday, after taking street drugs

Songhees and Esquimalt First Nations open new RV Park

Both nations excited about new economic venture

Lack of security: why Vancouver Island food production is on the decline

Big Read: agriculture a big, expensive commitment as advocates push to make us more food secure

Ready for day two at the Home Expo

One exhibitor, Atlas Junk Removal, uses their trucks for a good cause

VIDEO: Moose found licking salt off B.C. man’s pickup truck

Tab Baker was in his garage in Prince George when the small moose gave his truck a clean

UVic’s Gustavson goes carbon neutral for air travel

As a way to offset the frequent airplane travel that comes with… Continue reading

Child’s body found in river downstream from where boy went missing during flood

Three-year-old Kaden Young was swept out of his mother’s arms in February

B.C. VIEWS: Eliminating efficiency for farm workers

Don’t worry, NDP says, the B.C. economy’s booming

Spring Home Show this weekend in Colwood

West Shore Parks and Recreation will be transformed to showcase everything home related

Saanich mayor recommends fall referendum on future amalgamation talks

A Saanich councillor applauds the possibility of a referedum on whether Saanich… Continue reading

B.C. student makes short-list for autism advocacy award

Brody Butts honoured for his role as a mentor and self-advocate

Dinosaurs taking centre stage at National Geographic event

NatGeo Live series finale May 2 at the Royal features renowned paleontologist

Most Read