The British Columbia Real Estate Association (BCREA)
released its 2017 First Quarter Housing Forecast Update today.
Multiple Listing Service® (MLS®) residential sales in the
province are forecast to decline 14.1 per cent to 96,345 units this year, after
reaching a record 112,209 units in 2016. A moderation trend that began early in
2016, combined with tougher federal government mortgage qualification rules and
the foreign buyer tax in Vancouver, is expected to limit consumer demand over
the next two years. However, housing demand is expected to remain well above
the ten-year average of 84,700 unit sales.
“Solid fundamentals continue to underpin housing demand
in the province," said Cameron Muir, BCREA Chief Economist.
"International trade, population growth and consumer confidence will be
key economic drivers this year." Of note, net migration to the province
exceeded 50,000 individuals during the first three quarters of 2016, the
highest level since 2008 and a 50 per cent increase from the previous year.
The average MLS® residential price in the province is
forecast to decline nearly 5 per cent to $657,000 this year, largely the result
of increased consumer demand for multi-family homes and a higher proportion of
transactions occurring outside the Metro Vancouver market. While a significant
number of new homes are under construction in the province, market conditions
will continue to be tilted in favour of home sellers in many regions, while
home builders scramble to complete existing projects.
No comments:
Post a Comment