While real estate prices in B.C. will likely continue to climb, the national average is expected to moderate in 2016 and 2017, according to the Canada Mortgage and Housing Corporation.
The fourth quarter Housing Market Outlook says that provinces like B.C. and Ontario saw soaring housing prices, in part due to low mortgage rates, and that has helped to offset Alberta’s slumping housing market.
“We expect, however, that this counterbalancing effect will decrease over time. As such, housing starts and MLS sales are projected to moderate in 2016 and 2017,” said CMHC Chief Economist Bob Dugan in a release.
National housing prices are expected to plateau and favour moderately priced homes. Another factor behind the moderation is the proliferation of multi-unit buildings, many of which may go unsold and create a saturated market.
For 2015, the average Multiple Listing Service for housing prices in Canada is expected to be between $417,000 and $459,000. Gains over the next two years are expected to be 1.3 per cent in 2016 and 1.4 per cent in 2017, compared to the 7.2 per cent gains in 2015.