Photo: Evan Leeson/Flickr
The average resale house price in British Columbia is expected to increase six per cent to a record $569,800 this year and a further 1.2 per cent to $574,300 in 2015.
The forecast comes from the British Columbia Real Estate Association’s fourth quarter outlook, which also calls for a 15.1 per cent increase in the number of home sales across the province’s Multiple Listing Service this year — up to 83,900 units.
“While historically low mortgage rates support demand, the housing market is also being underpinned by a more robust economy and associated job growth, strong net migration and consumer confidence,” said BCREA chief economist Cameron Muir.
Indeed, the growth is expected to continue in 2015 where, like prices, home sales are expected to edge up another 1.2 per cent to 84,900 units. To put that into perspective, the 15-year average is 80,400 unit sales while the BC home sale record, recorded in 2005, was 106,300.
Housing starts, meanwhile, are forecast to increase 4.6 per cent to 28,300 units this year and a further 1.4 per cent to 28,700 units in 2015.
“New construction activity is generally keeping pace with population and household growth, keeping supply in line with consumer demand,” added Muir.
Of course the province is made up of many diverse regions, and not all will be in the black this year and next. See the below table for the complete provincial forecast broken down by region.