Sales Grow in 2013
Our good friend Cameron Muir’s October 26 provincial home sales missive forecasts a decline of 9.8 percent to 69,200 in 2012 but…
in 2013 he predicts it will increase 8.3 per cent to 74,920 noting that the fifteen-year average is 79,000 unit sales, while a record 106,300 MLS® residential sales were recorded in 2005.
“Despite stronger consumer demand in the interior, B.C. home sales will fall short of last year’s total.” Mr. Muir’s reasoning identifies “A moderating trend in Vancouver that has recently been exacerbated by tighter high-ratio mortgage regulation.The resulting decline in purchasing power has squeezed some potential buyers out of the market. However, strong full-time employment growth, persistently low mortgage interest rates and an expanding population base point to more robust consumer demand in 2013.”
He also says that “the average MLS® residential price is forecast to decline 7.6 per cent to $518,600 this year, the change is largely the result of luxury home sales returning to more normal levels after an unusually active 2011.”
Sales Down But Prices Up
In addition, the Lower Mainland’s share of provincial home sales is expected to decline to 57 per cent this year from 62 per cent in 2011. The average MLS® residential price in B.C. is forecast to edge up 0.7 per cent to $522,000 in 2013.
To view the full BCREA Housing Forecast, click here.
Information Copyright BCREA Reprinted with Permission