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Business in Vancouver

Vancouver home sales, prices to drop in 2017

Home unit sales and prices are expected to fall across the board in 2017, according to Canada’s British Columbia Real Estate Association

PUBLISHED : Wednesday, 30 November, 2016, 11:36am
UPDATED : Wednesday, 30 November, 2016, 11:38am

The foreign buyers tax and new government mortgage regulations will contribute to declines in both home unit sales and prices across Vancouver in 2017, Canada’s British Columbia Real Estate Association (BCREA) announced November 29.

Unit sales will fall 18.5 per cent in Vancouver next year, the BCREA forecasts, saying it expects a total of 34,000 homes to change hands in 2017. This is down from an estimated 41,700 units in 2016.

Prices will fall in 2017 as well, the association predicts. The average home sales price in Vancouver will be C$940,000 (US$699,007) next year, down 8.7 per cent from C$1,030,000 (US$765,779) this year.

Declines will also be seen across the province as a whole. The BCREA forecasts unit sales will fall 15.4 per cent, reaching 96,300, down from a record 113,800 this year. The average price will fall from C$698,900 (US$519,764) to C$654,200 (US$486,479) – a decrease of 6.4 per cent.

“Housing demand across the province is expected to moderate next year as declining affordability related to rising prices and government policy interventions limit the number of eligible buyers,” said BCREA chief economist Cameron Muir.

“However, while home sales are not expected to repeat this year’s record performance, consumer demand is expected to remain well above the 10-year average.”

The supply of homes across B.C. is expected to increase next year as demand moderates and new home projects are completed, the BCREA said in its report.

“A trend toward more balance in the market will unfold next year and exert less upward pressure on home prices,” the report said. “In addition, a larger contraction in the number of high-end home sales will contribute to moving the aggregate average price statistic lower.”

ecrawford@biv.com

@EmmaHampelBIV

 

Vancouver home sales, prices to drop in 2017