Tuesday, February 26, 2019

BC’s housing market is starting to turn a corner


 

The declining trend of home sales in British Columbia is expected to end in 2019 with a modest climb in forecasted sales, although conditions will remain subdued.

The British Columbia Real Estate Association expects MLS residential sales in the province to gain 2% in 2019 to 80,000 units, up from 78,345 in 2018.

By 2020, the forecast is 85,500 units, a 6.9% increase to take sales just above the 10-year average of 85,800 units.


“The negative shock to affordability and purchasing power created by the B20 stress test on mortgage borrowers is expected to continue constraining housing demand in the province this year,” said Cameron Muir, BCREA Chief Economist. “Favourable demographics along with continuing strong performance of the BC economy is expected to underpin housing demand over the next two years.”

Prices to remain flat

With inventory levels higher than average as a result of weakened sales, BCREA is not expecting increased prices.

Instead the forecast is for a slight increase of 0.5% to an average price of $716,100.

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