Sales of homes in British Columbia will slow this year according to a new report from the BC Real Estate Association. It expects a year-over-year drop of 6.2 per cent to 96,100 sales through its MLS before a 2 per cent gain in 2017. Both years’ sales will continue above the 10-year average of 83,200 units.
Demand will be strong as the economy continues to grow and offers opportunities for migrants from other provinces. That will add pressure on inventory and prices are projected to gain 6.4 per cent this year to an average $677,200 with a further 4.1 per cent gain in 2017 to $705,300.
“The inventory of homes for sale is now at its lowest level in almost a decade,” said Cameron Muir, BCREA Chief Economist. “Fewer homes for sale and strong consumer demand are expected to push home prices higher in most BC regions this year and in 2017.”
Total housing starts in the province are forecast to remain close to an annual pace of 30,000 units through 2017, which will be the strongest two-year performance since the 2007-2008 period.