Quick highlight of the BCREA's forecast for BC Economy as we are heading into Spring from their first-quarter housing forecast.
This week I am leaving it to the professional economists at BCREA, the British Columbia Real Estate Association (BCREA) released its 2022 First Quarter Housing Forecast Update. Bad news for buyers but good news for sellers as the BCREA is expecting prices to increase 8.5% in 2022 with the greatest portion of the gain to happen in the first half of the year.
According to the report, the Multiple Listing Service® (MLS®) residential sales in the province are forecast to decline 17 per cent, from a record high 2021 to 103,250 units, this year. In 2023 MLS® residential sales are forecast to fall an additional 12 per cent to 90,200 units.
"The BC housing market is entering 2022 with the lowest level of active listings on record and significant demand-side momentum. That means strong sales should persist through the first few months of the year and supply will remain severely limited. As a result, continued upward pressure on home prices is expected in all markets.
As a result, home prices are expected to rise by 8.5 per cent in 2022 with much of that gain happening in the first half of the year. With sales activity normalizing in 2023 and inventories rebuilding, market conditions around the province should improve and price growth is anticipated to slow to 2.7 per cent.
So much can change in an instant as we saw last March but hopefully, it helps give you an idea of what to expect. Feel free as always to reach out with any questions or wonder abouts.
Let me know if there is anything I can do for you!
Have a great week, and feel free to reach out with any questions!