The housing market in British Columbia has seen some positive movement in the last few months but it is far from being a stellar year.
The British Columbia Real Estate Association’s Economics team has posted its quarterly housing forecast for the fourth quarter of 2019, highlighting the ups and downs of the province’s housing market.
MLS sales are forecast to total 77,100 units for 2019, down 1.8% from the 78,505 in 2018. But 2020 should see an increase of 10.9% to 85,500, just short of the 10-year average of 85,800.
“After a slow start to 2019, MLS® home sales in BC have embarked on a sustained upward trend since the spring,” said Brendon Ogmundson, BCREA Chief Economist. “The dampening effects of federal mortgage rules mean that rather than a return to the heights of recent years, home sales are simply returning to trend after sustaining a significant shock.”
The build up of existing homes inventory during 2019 has started to reverse in many BC markets and this is expected to continue in 2020 with balanced markets being achieved.
Prices to rise
Prices are expected to be roughly in line with inflation although some markets may see strong growth amid tight supply.
Overall, BCREA is forecasting a decline in the MLS average price of 2.6% for 2019 and an increase of 3.6% in 2020 to $723,000.