BC Real Estate Association predicts 21% drop in residential property sales

By Marina Wang

According to a housing forecast update from the British Columbia Real Estate Association, residential sales are predicted to fall 21 per cent by the end of the year, from 103,768 last year to 82,000 this year. The decline would signify a big drop in commission income for real-estate agents as well as affect  the B.C. government revenue from property-transfer taxes.

“The B.C. housing market is grappling with a sharp decline in affordability caused by tough B20 stress test rules for conventional mortgages,” BCREA chief economist Cameron Muir said in a news release. “While these rules have had a negative effect on housing demand across the country, the impact has been especially severe in B.C.’s large urban centres because of already strained housing affordability.”

The largest drops in sales are forecasted for the Fraser Valley and Greater Vancouver areas, with 26.3 and 25.7 per cent decreases respectively. Sales are expected to increase slightly in Northern B.C. The BC real estate association also predicted housing sales to increase by eight per cent in 2019, up to 88,700 units.

According to the media release, despite policy driving down housing demand, many demographic factors continue to drive the market. Millenials are now entering “household-forming years”, and low uemployment rates lead to an increase in wages and subsequently, household wealth and confidence.

“After trending at decade lows, active listings in the province were up nearly 20 per cent in July,” reads the news release. “The combination of slower housing demand and an increase in the inventory of homes for sale has trended most markets toward balanced conditions. This means more selection for home buyers, fewer multiple offer situations and less upward pressure on home prices.”

2 Responses to BC Real Estate Association predicts 21% drop in residential property sales

  1. nonconfidencevote says:

    Gee whiz,
    B20 is beginning to work.
    Then you add on the Foreign Ownership tax and ….SLAM! goes the door on sales.

    Aaaaaand just when the Real Estate cartel thought this year couldn’t get any worse we finally, FINALLY have the Supreme Court ruling FORCING Real Estate boards all over Canada to stop filing lawsuits against people who publish sales stats on houses..

    https://business.financialpost.com/real-estate/decisive-victory-for-competition-supreme-court-wont-hear-treb-appeal-in-real-estate-data-case

    Real Estate board have threatened lawsuits and tried to crush anyone who wanted to publish house sales prices, days on market , etc etc etc.
    Self serving scum.

    Any other sales industry trying to hide the history of a large ticket item ( kinda exactly like hiding the mileage and collision history on a used car?) would be fined and or jailed.

    Well.
    The supreme Court has tossed out the Toronto Real Estate Board( TREB) appeal to keep sales info “secret”.

    The perfect storm of : B20, plummeting sales and now real, verifiable stats on a house history, days on market and price sold.

    Realtors finally facing the reality that their business was all smoke and mirrors protected by endless lawsuits to hide information.

    No more.
    I love it.

    This meltdown is gonna be epic and the arrogant, lazy, greedy pricks you pumped this market to the shitstortm it has now become….only need to look in the mirror to find the person to blame.
    🙂
    Time to get a real job realtors ’cause your “job” is toast whether you admit it or not..
    Soooo
    Start going to the gym.
    I hear Shovelling out full shitpits in outhouses is hard work.

    Happy housing CRASH everyone !

    AHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

  2. nonconfidencevote says:

    And if the BC Real Estate Association is willing to admit that “sales may drop 21%….”

    ITS GONNA BE WAY WAAAAAAAAAAY WORSE than THAT!

    Happy Housing Crash Realtors!

    Hope you socked away enough money in other areas to save you from the coming real estate MELTDOWN!

    What am I saying?

    I hope you all go bankrupt and have to beg for change on street corners….. and that gives beggars a bad name!
    Perhaps stealing and hoarding pencils from your employer might be a good start to your early unemployment options…….

    https://www.pinterest.com/pin/243264817345381799/

    Oh, and Realtors…..wearing sunglasses to give the impression you’re blind……is also a good sales strategy.

    As if you didnt know that.

    Happy Housing CRASH !

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