Housing market rebound to extend into 2014

(December 16, 2013 , posted in Market Forecast)

This is the market forecast report from Real Estate Board of Greater Vancouver on December 13, 2013.  This is a serious reality check for the buyers who are sitting on the fence waiting for the activity to decrease and the prices to drop....well, the outlook shows that it may not happen...at least not in 2014.

BC Multiple Listing Service® (MLS®) residential sales are forecast to increase 6 per cent to 71,700 units this year, before increasing a further 6.3 per cent to 76,200 units in 2014. The five-year average is 74,600 unit sales, while the ten-year average is 86,800 unit sales. A record 106,300 MLS® residential sales were  recorded in 2005.

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“Consumer demand has bounced back after waning for most of 2012,” said Cameron Muir, BCREA Chief Economist. “With higher interest rates on the horizon, many potential homebuyers are choosing to lock in a mortgage sooner rather than later. However, rather than signaling a return to frenetic home buying activity and accelerating markets, consumer demand is simply transitioning back to its long term average.”The average MLS® residential price forecast for the province has been revised upward from a 3.3 to a 4.3 per cent increase to $537,100 this year, as a result of stronger than expected market conditions in Vancouver. The average MLS® residential price in BC is forecast to increase a further 2.1 per cent to $548,200 in 2014.

The forecast calls for a stronger market, and a slightly higher prices in 2014; however, this is the average for the entire province of British Columbia.  If you would like to discuss your specific micro market or product type, contact us for more in depth information.  Kevin Ershad 604-602-4545

Source: Real Estate Board of Greater Vancouver and British Columbia Real Estate Association