Vancouver Home Sales Forecast to Push Province Past 2005 Recordby
B.C. prices set to increase 20% before easing to 3.4%
Record housing demand has depleted inventories in many areas
Vancouver’s torrid real estate market will propel housing sales in British Columbia past their 2005 high to a record this year before prices cool in 2017, the province’s real estate board forecasts.
Residential sales in the province will rise 12 percent to 115,200 units in 2016, above the previous peak of 106,310 units in 2005, the British Columbia Real Estate Association said in a statement Thursday. The forecast is 39 percent above the 10-year average for the province of 83,000 units sold a year. Prices will jump 20 percent to an average C$766,600 ($584,150) this year before easing to a 3.4 percent gain in 2017.
“Record housing demand has depleted inventories in many urban areas, and the resulting imbalance between supply and demand has pushed home prices considerably higher," said Cameron Muir, the association’s chief economist.
Vancouver is forecast to lead the growth with a 25 percent increase in prices. The market in the city has been surging amid an influx of foreign capital, low supply, and immigration. The pace prompted chief executive officers at two of Canada’s banks this week to urge the government to boost mortgage down-payment requirements to cool the market.