The housing market in B.C. has remained strong in 2023, with high prices due to a limited supply of listings. Despite challenging conditions for buyers, home prices have continued to rise. The BC Real Estate Association (BCREA) expects a 2 percent decline in pricing for the year, but there are several factors to consider.
The key takeaway for you is that the B.C. housing market has been resilient, partly due to very low inventory levels. Prices have gone up this year, especially in more expensive markets like Greater Vancouver, where buyer activity has remained strong despite fewer listings. The average benchmark price in this area is now $1.2 million.
Looking ahead, BCREA anticipates a normalization in activity as buyers adjust to higher interest rates. They expect prices to rise by 2.4 percent next year, with Greater Vancouver remaining the most expensive market with an average resale price of $1.3 million.
However, the main driver of pricing remains the limited supply of housing. This highlights the need for more listings and a broader range of housing types, both resale and new. It's important to note that sales of residential land have dropped, indicating ongoing supply constraints, even as the province encourages municipalities to meet housing demand through construction targets.
In summary, while B.C.'s housing market has seen high prices due to low inventory, there is a potential for a 2 percent decline this year, with expectations of stabilization and moderate price increases in the coming years. The key takeaway for readers is the importance of addressing the supply issue in the housing market to support more sustainable pricing in the future.