Growth in Metro Vancouver home prices is expected to slow down over the next year, but that doesn’t mean sky high housing prices are expected to drop.
Cameron Muir is the Chief Economist with the B.C. Real Estate Association, and he says historical data shows that after a period of rapid price increases, growth in prices reverts back to the historical average of 5% to 6%, over the next year.
Based on past trends, price drop unlikely
He says housing prices in the past have only dropped in extreme circumstances.
“And that’s typically happened when we’ve seen a recession or a significant change in macro-economic policy, so without this kind of external shock, typically what happens is the growth in prices tends to slow. Within about a year we see those prices level, growth in home prices, tend to be about the same as it has been in its historical average.”
The report shows the year began with home prices posting year-over-year increases of 30%.