Housing prices in BC expected to continue rising in 2017
The housing market of the most expensive province in Canada is showing no signs of slowing down.
According to a forecast by Central1, an organization which offers support to credit unions, the BC housing market can be expected to witness increases in price up until 2017.
The report forecasts a 3.8 per cent price growth in 2017.
The report, penned by senior economist Bryan Yu, states that, “The median home price will rise by nearly six per cent to $425,000 this year, $450,000 in 2016 and $462,000 in 2017.”
The report explains that the pricing momentum in Metro Vancouver has impacted prices in the neighbouring Fraser Valley areas, which are anchored by Chilliwack and Abbotsford-Mission.
Talking about housing starts, Yu wrote, “While the housing starts are being driven by Metro Vancouver, relative growth has been strongest among Vancouver Island markets with Victoria and Nanaimo housing starts up by more than 50 per cent.”
The report also discusses the impact of low interest rates and modest employment growth on the rising house prices in the province.
Looking at the whole province, Central1 is estimating an additional 5.5 per cent rise in median price this year, followed by a 5.9 per cent rise in 2016, and a 2.7 per cent rise in 2017.