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

Annual pickleball tournament fills up quickly

Two-day event to take place indoors at Oceanside Place May 24-25

Lighthouse Country bus tour to focus on area’s tourism destinations

Business assocation wants more tourists to come to the area

Flock of spinners holding fleece and fibre fair in Coombs

Annual event raises money for Bradley Centre, supports local producers and vendors

BC Ferries CEO, president speaks to Parksville and Qualicum Beach chambers

Guest asks about Vancouver Island resident discount fares

VIDEO: After the floods, comes the cleanup as Grand Forks rebuilds

Business owners in downtown wonder how long it will take for things to go back to normal

B.C. dad pens letter urging overhaul of youth health laws after son’s fatal overdose

The Infants Act currently states children under 19 years old may consent to medical treatment on own

Singh sides with B.C. in hornet’s nest of pipeline politics for the NDP

Singh had called for a more thorough environmental review process on the proposal

Construction crane tips over at Nanaimo work site

Incident happened Wednesday morning at Turner Road and Uplands Drive

30 C in B.C., 30 cm of snow expected for eastern Canada

It might be hot in B.C., but the rest of Canada still dealing with cold

Horgan defends fight to both retain and restrict Alberta oil imports

Alberta says pipeline bottlenecks are kneecapping the industry, costing millions of dollars a day

B.C. Transit shows off NextRide bus technology

New technology allows for real-time tracking, to be rolled out through early 2019

Police release video on how to ‘run, hide, fight’ if there’s an active shooter

Vancouver police offer video with input from E-Comm, BC EHS, Vancouver Fire and Rescue

RCMP caution boaters after two kids pass out from carbon monoxide poisoning

Both children were given oxygen and taken to hospital

Most Read