The relationship between sales and listings in the marketplace today suggests a balanced market. If current conditions are sustained over the coming months, we would expect to see year-over-year price growth normalize slightly above the rate of inflation. However, if some buyers move from the sidelines back into the marketplace, as TREB consumer research suggests may happen, an acceleration in price growth could result if listings remain at current levels.
However, Residential sales in Canada are forecast to decline 10 per cent by end of this year, after reaching a record high in 2016, as a result of the recent intervention by federal and provincial governments. Strong economic fundamentals are underpinning consumer demand and are expected to keep home sales at elevated levels through 2018.
“British Columbia’s position as the best performing economy in the country is bolstering consumer confidence and housing demand,” said Cameron Muir, BCREA Chief Economist (British Columbia Real Estate Association) “Strong employment growth, a marked increase in migrants from other provinces, and the ageing of the millennial generation is supporting a heightened level of housing transactions. However, a limited supply of homes for sale is causing home prices to rise significantly in many regions, particularly in the Lower Mainland condominium market.”