Home sales in British Columbia will likely fall significantly in 2017 after a record breaking year in 2016, according to the BC Real Estate Association.
In its latest housing forecast, the BCREA predicts the number of residential units sold in BC this year will climb 11% by the end of 2016, to a record 113,800 units sold this year.
That will eclipse the previous record of 106,310 homes sold in 2005. But the BCREA also predicts the hot market will slow way down in 2017, with home sales set to decrease 15.4%.
In a release, chief economist Cameron Muir attributed the expected drop to current high prices and new restrictions introduced by the province and federal government.
“Declining affordability related to rising prices and government policy interventions limit the number of eligible buyers,” said Muir.
“However, while home sales are not expected to repeat this year’s record performance,
consumer demand is expected to remain well above the 10-year average.”
That average is 85,000 homes sold in a year; the forecast drop will only take the number of homes sold down to 96,300.
Lower home prices?
Here’s some good news for potential buyers – BCREA forecasts the average home price in BC will fall by 6.4% next year to $654,200.
That will be down to fewer high-end home sales, say the BCREA. And of course, that follows a predicted average home sale price increase this year of 9.8% to $698,900.