The B.C. Real Estate Association is out with its Third Quarter Housing Forecast update, and it’s predicting a 10% decline in the number of sales this year.
But it says strong economic fundamentals are supporting consumer demand that is expected to keep home sales at elevated levels this year and in 2018.
Says Associaton economist Cameron Muir, “British Columbia’s position as the best-performing economy in the country is bolstering consumer confidence and housing demand.”
“Strong employment growth, a marked increase in migrants from other provinces, and the aging of the millennial generation is supporting a heightened level of housing transactions.”
However, Muir notes, “a limited supply of homes for sale is causing prices to rise significantly in many regions, particularly in the Lower Mainland condominium market.”
The average residential price is forecast to rise 3.5% to $715,000 this year, and a further 4.1% to nearly 745,000 in 2018.