BC Home Sales to Rise into 2016

The British Columbia Real Estate Association has released its 2015 First Quarter Housing Forecast Update.

Stronger economic conditions here at home and abroad combined with favourable interest rates and population growth are expected to bolster housing demand over the next two years. After a year in which housing demand was higher across the province, the retrenchment of oil prices is expected to attenuate housing demand in some regions while bolstering it in others. The Multiple Listing Service residential sales in British Columbia is forecast to rise 2.4 per cent to 86,050 units this year and a further 3.9 per cent to 89,400 units in 2016. The ten-year average is 82,100 unit sales. With a record 106,300 MLS residential sales were recorded in 2005.  

The average MLS residential sales price is forecasted to rise 4.5 per cent to $594,000 this year, with most of the upward pressure being on the South Coast. Elevated consumer demand is expected to be partially offset by resale inventories and additions to the housing stock in 2016. As a result, the average MLS  residential sales price is forecast to increase by 2.4 per cent to $608,500 next year

BC Home Sales Decline in 2012

The British Columbia Real Estate Association (BCREA) reports that a total of 67,637 residential sales were recorded by the Multiple Listing Service in BC during 2012, a decline of 11.8 per cent compared to 2011. Total sales dollar volume also declined 19.1 per cent to $34.8 billion over the same period. The annual average MLS residential price in the province was $514,836 in 2012, down 8.3 per cent from 2011.

A noticeable drop in consumer demand in Vancouver and Fraser Valley during 2012 was more than enough to offset the increases in home sales in the Okanagan, Kootenays and BC Northern regions.

At least half of the 8 per cent decline in the BC average home price was the result of fewer luxury homes selling in Vancouver and fewer overall Vancouver home sales relative to the rest of the province in 2012. However, there were more luxury homes sold in Kelowna this year.

In December, BC residential sales dollar volume was down 28.6 per cent to $1.5 billion, compared to December 2011. Residential unit sales declined 26.4 per cent to 3,011 units, while the average MLS

residential price was down 3 per cent to $498,205 over the same period.