B.C. home sales to exceed 100,000 units for third straight year
Even though the sales of houses in British Columbia are predicted to experience a 10 per cent decline in 2017 compared to last year, the results produced this year are good enough, said the British Columbia Real Estate Association.
It is predicted that sales in the province will reach 101,000 units this year, compared to the 112,00 sold last year, but still a far better result than the average 84,700 units sold last decade.
The association anticipates that sales this year will be quite good, partly because of the high demand which has overshadowed the consequences of policies designed to stabilize the market, like the non-resident buyers tax, while the economy is strong and people from other provinces continue to cluster in B.C.
Cameron Muir, chief economist of the association, says the number of residencies available for sale has not been able to satisfy the high demand, leading to higher prices for condos and detached houses.
He estimates that the average residential home price throughout British Columbia is predicted to drop 1.1 per cent to $683,500 this year, and increase 5.2 per cent to $719,100 in 2018, due in part to a greater concentration on condo sales and sales out of Metro Vancouver.
“The decline is largely due to a shift in the mix and share of homes sold, and not representative of rising values of the typical home,” the association says in a news release.
The association’s predictions for the second quarter awaits discounted mortgage rates which might increase slightly towards the end of 2017, even though posted rates are predicted to remain the same and experience no instantaneous end to the seller’s market throughout most B.C. regions.