BCREA: 2021 Housing Forecast Update
Business Examiner • September 15, 2021
BRITISH COLUMBIA
- The British Columbia Real Estate Association (BCREA) released its 2021 Third Quarter Housing Forecast
Update today.
Multiple Listing Service (MLS) residential sales in the province are forecast to rise 26 per cent to 118,350 units this year, after
recording 94,007 sales in 2020. In 2022, MLS®residential sales are forecast to pull back 15 per cent to 100,150 units.
“The pace of home sales in the province has slowed in recent months but an unprecedented start to the year still has BC on track
for a record-breaking year,” said Brendon Ogmundson, BCREA Chief Economist.
With strong demand being supported by low mortgage rates and a rapidly rebounding post-COVID economy, the more significant concern is whether there will be an adequate supply of listings in the market.
The supply situation is especially severe in markets outside the Lower Mainland, where new listings activity has been lackluster.
As a result, the average price in 2021 is on track to post a second consecutive year of double-digit gains. We are forecasting the provincial average price to rise 16.6 per cent to $911,300 this year, followed by a 2.9 per cent gain next year to $937,300.
Update today.
Multiple Listing Service (MLS) residential sales in the province are forecast to rise 26 per cent to 118,350 units this year, after
recording 94,007 sales in 2020. In 2022, MLS®residential sales are forecast to pull back 15 per cent to 100,150 units.
“The pace of home sales in the province has slowed in recent months but an unprecedented start to the year still has BC on track
for a record-breaking year,” said Brendon Ogmundson, BCREA Chief Economist.
With strong demand being supported by low mortgage rates and a rapidly rebounding post-COVID economy, the more significant concern is whether there will be an adequate supply of listings in the market.
The supply situation is especially severe in markets outside the Lower Mainland, where new listings activity has been lackluster.
As a result, the average price in 2021 is on track to post a second consecutive year of double-digit gains. We are forecasting the provincial average price to rise 16.6 per cent to $911,300 this year, followed by a 2.9 per cent gain next year to $937,300.
SURREY, BC – The Fraser Valley market showed early signs of a spring thaw in February, with sales increasing over January, but continuing to trail typical levels for this time of year. The Fraser Valley Real Estate Board recorded 843 sales on its Multiple Listing Service® (MLS®) in February, a 36 per cent increase from January, but 38 per cent below the ten-year seasonal average. New listings declined nine per cent in February to 2,796, suggesting some sellers are choosing to wait amid competitive inventory levels, and may be positioning their homes for the peak of the spring market.
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