The B.C. Real Estate Association is predicting home sales in the province will fall by 14% this year, after last year’s record sales of 112,000 units.
In its 2017 First Quarter Housing Forecast Update, the Association predicts that consumer demand will continue to be limited this year and next, because of the 15% foreign buyers tax in Metro Vancouver and tighter federal mortgage rules.
Association Chief Economist Cameron Muir says while the market for detached homes in Metro Vancouver is down, it’s up for condos and apartments.
“Conditions are still a strong seller’s markets in both attached and apartment markets in Metro Vancouver. And that’s really being supported by strong population growth and of course we have a big, large number of millennials, that’s about the same size as the baby boomers, now entering their home buying years, and that’s going to add demand over the coming years in that marketplace.”
The BCREA also predicts the average residential price will fall nearly 5% to $657,000 this year.
Regionally, it says the markets in Greater Victoria and the Okanagan continue to do well.