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

Coastal GasLink gets interim injunction against Unist’ot’en

The LNG pipeline company can start work Monday with enforcement approved by court.

They’re engaged!

Birthday party turns into engagement party for Doug and Matilda

Hampers a chance to help in the Christmas spirit

SCSA sends around 350-400 hampers to the area from Witset to Telkwa.

Volunteers create Christmas magic at Santa’s Breakfast

PHOTOS: For the past 19 years, a local event helped remind us that Christmas is a time of giving.

Most intervenor requests in crucial natural gas pipeline case rejected

At stake is whether gas pipeline to LNG Canada plant should fall under federal jurisdiction

VIDEO: Royals reveal the images on their Christmas cards

Prince William and his wife Kate are shown outside in casual clothes, their three young children in tow

ICBC to apply for 6.3% hike to basic insurance rates

Crown Corporation said it will be submitting its next basic rate application to the British Columbia Utilities Commission Friday

Media, robotics, Indigenous studies coming to B.C. Grade 12 classrooms in 2019-20

Provincial tests are also being changed for students in Grade 10 to 12, the Education Ministry said

Stranded B.C. trucker writes final wishes before being rescued 3 days later

‘I was just praying someone would come along’

Canfor Corp. extending temporary curtailment of sawmills in B.C.; cutting hours

Vancouver-based company says the decision is due to declining lumber prices, high log costs and log supply constraints

Canada’s prospective world junior team members await final roster decisions

Thirty-four players were invited to the national junior selection camp

Family searching for B.C. professor last seen at Colombian salsa club

Ramazan Gencay, a professor in economics at Simon Fraser University, was last seen in Medellin

Rash of bomb threats a learning opportunity for response capacity, Goodale

Thursday’s wave of bomb threats swept across communities on both sides of the Canada-U.S. border

Mike Duffy can’t sue Senate over suspension without pay, judge rules

Duffy’s lawsuit sought more than $7.8 million from the upper chamber

Most Read