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Modest growth in housing prices
The British Columbia Real Estate Association (BCREA) released its 2012 First Quarter Housing Forecast Update today, and the operative words they’re using is ‘modest.’
“Modest economic growth at home and abroad is expected to limit growth in consumer demand both this year and in 2013,” said Cameron Muir, BCREA Chief Economist.
BC Multiple Listing Service residential sales are forecast to increase 2.1 per cent from 76,817 units in 2011 to 78,400 units this year, increasing a further 2.7 per cent to 80,500 units in 2013. The 15-year average is 79,000 unit sales.
“While European sovereign debt concerns and a sluggish U.S. economy will continue to impact consumer confidence, strong demand in the bond market is expected to keep mortgage interest rates at or near record lows for most of 2012,” Muir added.
Home prices in most B.C. markets are forecast to experience little change over the next 24 months as the supply of homes for sale more closely matches consumer demand.
The average residential price in the province is forecast to edge down 2.2 per cent to $548,500 this year and remain relatively unchanged in 2013, albeit increasing 0.8 per cent to $553,000.