BCREA releases Fourth Quarter Housing Forecast

The British Columbia Real Estate Association released their 2017 Fourth Quarter Housing Forecast on Tuesday, November 28, offering in-depth analysis of what’s been happening and what’s to come for real estate across the province.

“Housing demand across the province will face increasing headwinds in 2018,” said Cameron Muir, BCREA Chief Economist. “A rising interest rate environment combined with more stringent mortgage stress tests will reduce household purchasing power and erode housing affordability.”

The report forecasts that, after an expected decrease in sales this year, Multiple Listing Service® residential sales in the province will decline 10.4 per cent in 2018 as well. Supply levels will continue to trend on the lower end of historical levels, which could move the market towards more balanced conditions and reduce pressure on home prices.

The Fraser Valley and Lower Mainland are featured extensively in the full report starting on Page 6. According to BCREA’s economists, our region can continue to expect the combined influence of employment growth, international and interprovincial migration, and economic strength to fuel demand into next year.

“Residential sales have rebounded from levels of a year ago, up 25 to 35 per cent in Vancouver, the Fraser Valley and Chilliwack in October. However, year-to-date transactions were down 10 to 14 per cent, reflecting moderation from the record demand in the first quarter of 2016.”

To see the latest Fraser Valley housing market data, reports, and analysis, visit the Market Data & Stats page on REALTOR Link®. To create your own reports and graphs, check out the Board’s Stats Centre.