BC home sales are on pace to reach 71,700 units in 2013, up 6 per cent from last year, according to the B.C. Real Estate Association’s fourth quarter housing forecast. In 2014, the association predicts the upward trend will continue, increasing a further 6.3 per cent to 76,200 units.
“Consumer demand has bounced back after waning for most of 2012,” said BCREA chief economist Cameron Muir.
“With higher interest rates on the horizon, many potential homebuyers are choosing to lock in a mortgage sooner rather than later. However, rather than signaling a return to frenetic home buying activity and accelerating markets, consumer demand is simply transitioning back to its long term average,” Muir continued.
The five-year average is 74,600 unit sales, while the ten-year average is 86,800 unit sales. BC’s best year was in 2005 when a record-breaking 106,300 residential sales were recorded.
The average residential price for a resale property this year is forecast to climb 4.3 per cent to $537,100, thanks to stronger than expected market conditions in Greater Vancouver.
Next year the average price province-wide is expected to climb a further 2.1 per cent to 548,200 in 2014.
To read the full report, which includes market breakdowns by region, click here.