According to the British Columbia Real Estate Association (BCREA), sales in BC are forecast to rise next year.
Multiple Listing Service® (MLS®) residential sales in the province are expected to decline 9% to 71,400 units in 2019, after recording 78,346 residential sales in 2018. MLS® residential sales are forecast to increase 14% to 81,700 units in 2020.
"The shock to affordability from restrictive mortgage policies, especially the B20 stress test, will continue to limit housing demand in the province this year," said Cameron Muir, BCREA Chief Economist. "However, a relatively strong economy and favourable demographics are likely creating pent-up demand in the housing market".
The inventory of homes for sale has climbed out of a cyclical low, leading to balanced market conditions in many areas and buyer's market conditions in some communities and across some products types. Current market conditions are expected to provide little upward pressure on home prices this year, with the average annual residential price forecast to remain essentially unchanged, albeit down 2% to $697,000. Modest improvement in consumer demand is expected to unfold though 2020, pushing the average residential price up 4% to $726,000.
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