Real estate buyers get out your wallets – housing prices in B.C. are set to rise this year.
According to Central 1 Credit Union, the median price for a home in B.C. will hit a new record of $402,000 this year, up from approximately $392,000 in 2010.
This while overall sales are expected to climb 7% to 95,500 units in 2011, a return from a 10.5% drop in 2010.
Central 1 believes that sales will edge upward a further 2% in 2012 and soar 15% in 2013, but the shadow of the Great Recession isn’t likely to disappear any time soon.
“Even after those gains, sales will be below the levels we saw from 2002 to 2007,” said Central 1 economist Bryan Yu. “Low but rising interest rates and tighter mortgage insurance rules will restrict sales for the next few years.”
He added that Metro Vancouver would see “the strongest uptick” in early-year activity this year as buyers rush to beat tougher mortgage rules set to take effect March 18.
Throughout the next three years, Metro Vancouver and northern B.C., where resource industries have taken off amid a commodities boom, are expected to have the strongest sales volumes.
That said, the Okanagan, the Kootenays and sections of Vancouver Island where recreational and retirement properties are common will remain the “weak links” in the housing sector as buyers “remain hesitant to make discretionary and luxury purchases,” Central 1 said.