B.C. is buoying the country’s residential real estate market, according to a forecast update from the Canadian Real Estate Association (CREA). Prices increased 11.5 per cent, significantly bolstering the national average, while sales activity increased 21.4 per cent in 2015 over 2014 – and those figures aren’t just for Vancouver. The association, however, expects increases in sale prices in B.C. to continue but to drop to a more modest two per cent next year, down from an unprecedented 11.5 per cent in 2015.
Over the last 12 months, the Lower Mainland has bucked up not just the provincial average but also the national average. Prices increased 18 per cent over the last year in Greater Vancouver and 12.3 per cent in the Fraser Valley. The benchmark price for a property in the city of Vancouver, which includes condos and townhouses, hit $930,000. Even on Vancouver Island, which hadn’t seen a full recovery since the 2009 recession, prices fluctuated at between six and eight per cent higher last month over November 2014.
The CREA, which represents the country’s realtors, also laid out its analysis of the recent changes to Canada’s mortgage rules, which affect properties sold for over $500,000. “Larger more expensive housing markets will be affected most,” said Gregory Klump, CREA’s chief economist, in a statement. “Unfortunately, the regulatory changes will also cause unintended collateral damage to housing markets beyond Toronto and Vancouver, including places that are facing economic headwinds from the collapse in oil prices.”
Source: Jacob Parry, BC Business