Home sales are expected to drop in B.C., but not until next year.
The British Columbia Real Estate Association says 2016 will see a record number of home sales, but it says 2017 will see 96,000 sales – a 15 per cent drop from this year’s expected 113,000.
The BCREA says the new taxes introduced this year will have kicked in by then – that, and with fewer people being able to afford to buy, is why it says we’ll see the decline.
“When we look at those overall home sales after the implementation of the tax, I think some of that is obviously a decline in the number of foreign buyers but also some apprehension of the single detached marketplace in which potential homebuyers have taken a bit of a wait-and-see- approach,” says Chief Economist Cameron Muir.
As for prices; after this year’s expected average MLS price of $699 000 this year, we can expect a 6.4 per cent drop to $654,000 in 2017.
However the BCREA says the demand for housing units will still be higher than 85,000 sales, that’s the 10-year average.