According to the Multiple Listing Service® (MLS®)forecast, residential sales in the province are to decline 1.8% to about 77,100 units this year, compared to 78,505 residential sales in 2018. Residential sales on MLS® are forecast to increase 10.9% in 2020 and hit 85,500 units, just below the 10-year average for MLS® residential sales of 85,800 units.
"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."
It is anticipated that sales and listings will find balance as demand normalizes. BC markets are seeing a reversal in the accumulation of resale inventory and this trend is said to continue in 2020. This means that the price growth will be in-line with inflation for most markets, but for a few supply-constrained areas there is a strong price growth forecast. We anticipate that the MLS® average price will decline 2% in 2019 before rising modestly by 3.6% to $723,000 in 2020.