Despite a projection that B.C.’s housing market will cool in 2016, there’s no signs of it slowing down just yet. Home sales in the province were up 33% year-over-year for January, according to the British Columbia Real Estate Association.
A total of 5,831 homes were sold in January, representing total sales dollar volumes of $4.39 billion, a 69% increase from last year.
On top of hot sales, the average price of a home in B.C. increased nearly 27% year-over-year to $752,906.
“Heightened demand is being met with the lowest level of supply in a decade, resulting in increased pressure on prices in much of the province,” said BCREA economist Brendon Ogmundson in a release.
Low mortgage rates and rising employment in B.C. can be attributed to the continued growth of home sales in the province. The BCREA is predicting, however, that home sales will eventually slow this year after having the third highest on record in 2015 at 102,517 units.
Don’t expect a total housing crash, however. Economist Diana Petramala with TD Bank says Vancouver in particular will benefit from foreign investment inflows due to a weak Canadian dollar.
As well, many people are migrating from less economically stable provinces to seek work in British Columbia, keeping the housing market on a continued upward trajectory.