BC home sales forecast to drop 10%

Home sales in British Columbia are forecast to end 2017 down 10% compared to 2016.

The British Columbia Real Estate Association expects 100,900 units to be sold through its MLS this year, down from a record-breaking 112,209 last year.

Despite the decline, sales are well above the 10-year average of 84,700. For 2018, the association expects sales to remain elevated with a forecast of 99,000 sales.

"British Columbia's position as the best performing economy in the country is bolstering consumer confidence and housing demand," said Cameron Muir, BCREA Chief Economist.

He added that growth in employment, migration from other provinces and the ageing of the millennial generation is supporting a heightened level of housing transactions.

“However, a limited supply of homes for sale is causing home prices to rise significantly in many regions, particularly in the Lower Mainland condominium market," said Muir.

The average price is expected to rise by 3.5% to $715,000 in 2017 and then pick up pace to 4.1% in 2018 ($745,000) with the average moderated by a higher share of sales outside Vancouver.

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