Multiple Listing Services residential sales in B.C are forecast to decline 10.4 per cent to 91,700 units in 2018, according to a news release by British Columbia Real Estate Association.
A record high sales of 112,209 units were sold in 2016 and the ten-year average for MLS residential sale is 84,700 units.
Cameron Muir, BCREA Chief Economist says housing demand across B.C. is set to decline in 2018 due to rising interest rates and more stringent mortgage stress tests. This, he says, will reduce household purchasing power and erode housing affordability.
The supply of homes for sale is now trending at or near decade lows in most B.C. regions; this imbalance between supply and demand is largely responsible for the fast increase in home prices. Moreover, the average MLS residential price in the province is forecast to increase 3.1 per cent this year and further 4.6 per cent to $745,300 in 2018.