Residential Market Commentary - week of January 9, 2017
Jan 9, 2017, 15:55 PM
2017 is well underway, so what are the market watchers expecting for the next 12 months? In a word, “easing”.
In its latest quarterly forecast the Canadian Real Estate Association cites tighter mortgage rules, for both borrowers and lenders, and the ongoing slowdown in the Greater Vancouver area as key reasons for declining national averages.
For example, CREA predicts a 3.3% decline in total sales for 2017, led by a drop of more than 12% in B.C. Affordability and tight supply in the GVA figure heavily in the B.C. numbers.
British Columbia is also projected to be the big weight that will pull down prices – a 2.8% decline nationally. Prices are forecast to fall nearly 8% in B.C., outstripping even the provinces hit hard by weak oil prices.
CREA does point out that these averages are skewed by 2016’s unusually exaggerated numbers in the B.C. market.