The British Columbia Real Estate Association forecasts that the average residential price in the province will increase 13 per cent to $571,000 this year, before edging back 2.5 per cent to $557,000 in 2012.

In a news release issued today, the BCREA also predicted a moderate increase in housing this year and next.

“After declining 12 per cent in 2010, residential unit sales through the Multiple Listing Service in B.C. are forecast to rise by five per cent to 78,200 units in 2011 and a further three per cent to 80,700 units in 201,” the release said.

However, the BCREA also said that home sales will remain below their 10-year average of 87,600 units both this year and next.

“Home sales will post some modest gains over the next two years,” Cameron Muir, BCREA chief economist, said in the release. “However, positive housing fundamentals like job growth, rising wages and an expanding population base will be somewhat offset by higher borrowing costs over the next eighteen months.”

Source: Vancouver Sun

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