Home sales in the Greater Vancouver region went down by 5.2% in the year 2016 and an added reduction of 11.4% is forecasted for this year. This forecast has been released as part of the report unveiled on the 31st of August, 2017, by the British Columbia Real Estate Association. 40, 880 units were sold in this region in 2016 and the number of unit sales is expected to plunge to 36, 200 this year. Another drop of 0.6% has also been predicted for 2018.
This decrease will not be spurred on account of a sluggish economy in the region according to Cameron Muir, the chief economist at BCREA but will be spurred majorly due to issues revolving around supply of housing units. British Columbia is one of the best performing and consistent economies in the country and this is definitely boosting customer sentiments and demand for housing units. An increase in migration from other areas and the financial progress of millennials is definitely backing an increase in overall housing sales.
However, the figures are going down due to lower supply of homes and this is leading to a considerable rise in prices in many areas, especially in the condominium market in the Lower Mainland. Prices went up last year to $1,017,228 which indicates an increase of 12.7% while they are expected to increase by 2.2% this year to stand at $1,040,000. An increase of 2.9% is also forecasted for 2018 when prices are expected to touch $1,070,000.
There is a 10.1% fall expected in the number of housing units being sold in comparison to 2016. In the year 2018, another 1.9% drop is also forecasted by this report. Average sales prices across the Vancouver province should go up to $715,190 which indicates growth of 3.5% as per the report and an extra 4.1% in 2018 to stand at $744, 660. The average price in the province will go downwards based on the sales locations and overall market mix according to the BCREA. According to the association, there will be lower sales of detached homes in comparison to apartments and other attached properties. A major chunk of sales outside the Metro Vancouver belt will lead to restricting growth of the average price in the province.