BCREA 2016 First Quarter Housing Forecast Update
The British Columbia Real Estate Association (BCREA)
released 2016 First Quarter Housing Forecast Update.
Multiple Listing Service® (MLS®) residential sales in the
province are forecast to edge back 6.2 per cent to 96,100 units this year,
after reaching 102,517 units in 2015. Strong consumer demand is expected to
push MLS® residential sales up by 2 per cent to 98,000 units in 2017.
Housing demand in the province is being supported by a
relatively robust economy, leading to strong employment growth and rising
wages. In addition, net interprovincial migration is on an upswing as many
Albertans look to BC for job opportunities. BC home sales are forecast to
remain well above the ten-year average of 83,200 units over the next two years.
“The inventory of homes for sale is now at its lowest
level in almost a decade,” said Cameron Muir, BCREA Chief Economist. “Fewer
homes for sale and strong consumer demand are expected to push home prices
higher in most BC regions this year and in 2017.” The average MLS® residential
price in the province is projected to increase 6.4 per cent to $677,200 this
year and a further 4.1 per cent to $705,300 in 2017.
New home construction activity is expected to remain at
elevated levels corresponding to strong consumer demand and relatively thin
inventories, particularly on the South Coast.
Total housing starts in the province are forecast to remain close to an
annual pace of 30,000 units through 2017, which will be the strongest two year
performance since the 2007-2008 period.
Copyright BCREA – Reprinted with permission
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