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BC Real Estate Association Releases Upbeat 2020 First Quarter Housing Forecast
- January 29, 2020
Multiple Listing Service residential sales in the province are forecast to increase 10.3 per cent to 85,290 units this year, after recording 77,349 residential sales in 2019. MLS residential sales are forecast to increase 6.3 per cent to 90,700 units in 2021.
VANCOUVER - The British Columbia Real Estate Association (BCREA) released its 2020 First Quarter Housing Forecast Update recently with an upbeat forecast.
Multiple Listing Service residential sales in the province are forecast to increase 10.3 per cent to 85,290 units this year, after recording 77,349 residential sales in 2019. MLS residential sales are forecast to increase 6.3 per cent to 90,700 units in 2021.
“The outlook for home sales in 2020 is considerably brighter than the past two years,” said Brendon Ogmundson, BCREA Chief Economist. “Momentum carried through from the end of 2019 to 2020 will put the housing market on more solid footing, aided by low interest rates and an improving economy.”
While demand is recovering, the supply of homes for sale has not managed to keep pace. New listings activity did not materially increase during the downturn in home sales, and total inventory did not accumulate to the same extent as in prior slowdowns. As a result, market conditions around the province are tightening and home prices will likely face upward pressure as demand continues to firm. In 2020, we expect the MLS® average price will rise 4.8 per cent to $734,000.