The BC Real Estate Association’s (BCREA) fourth-quarter housing forecast said housing sales will slow in 2018, but prices will rise.
“In 2018, there are going to be some headwinds in the housing market, primarily some higher interest rates, also tighter mortgage qualifications applying a stress test to conventional mortgages,” said BCREA chief economist Cameron Muir.
“We’re faced with a much higher price level that’s going to exacerbate the impact of rising interest rates and tighter mortgage qualifications,” said Muir.
Housing sales were expected to reach 102,350 units in 2017, but drop 10 per cent this year to 91,750 units.
The average price of a B.C. home is slated to increase 4.6 per cent to $745,300 in 2018.
Vancouver condo prices may spike this year due to a shortgage of new units. Starts of new strata homes in the city were down 58 per cent as of November 2017 compared to a year earlier.