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

Aldergrove celebrates Arbour Day: VIDEO

Trees were planted in memory of Langley Township’s community volunteers

PHOTOS: Christy Fraser Memorial underway in Langley

Over 700 athletes from across the province are attending

Fraser Health patients to see 23% hike in knee, hip replacement surgeries

New approach will see first-available surgeon waitlists

Stealth finish winless at Langley Events Centre

Vancouver pro lacrosse team finishes with 0-9 home record

VIDEO: After the trees fell, Hunter Park reopens in Langley City

The rebuilding of the park “has turned disaster into triumph,” mayor says

REPLAY: B.C. this week in video

In case you missed it, here’s a look at replay-worthy highlights from across the province this week

Lucky Lotto winner in Aldergrove

$500,000 prize winner in Saturday’s Lotto 649 “Extra” draw

Dix says B.C. remains focused on fighting youth overdoses in wake of teen’s death

Elliot Eurchuk’s parents say he died at his Oak Bay home after taking street drugs

Langley schools helping schools

Parents’ Advisory Councils work together for the children’s benefit

Final week for ALR input

Public consultation process closes April 30

‘When everybody leaves: Counselling key to help Humboldt move on after bus crash

Dealing with life after a tragedy can be the worst part following a loss

One person arrested after man killed in Vancouver

Police say this is Vancouver’s seventh murder of 2018

Half-naked shooter guns down four, runs away in Nashville Waffle House shooting

Nashville police say they are looking for Travis Reinking in connection with the shooting

Downtown roads closed for Vancouver Sun Run

Thousands of runners participate in the annual event

Most Read