The British Columbia Real Estate Association has released its 2020 first quarter housing forecast update.
Residential sales in the province are forecast to increase by 10.3 per cent, to 85,290 units this year, after recording 77,349 residential sales in 2019.
In 2021, residential sales are forecast to increase by 6.3 per cent, to 90,700 units.
“The outlook for home sales in 2020 is considerably brighter than the past two years,” BCREA’s chief economist Brendon Ogmundson said.
“Momentum carried through from the end of 2019 to 2020 will put the housing market on more solid footing, aided by low interest rates and an improving economy.”
While demand is recovering, Ogmundson said the supply of homes for sale has not managed to keep pace.
He said new listings activity did not materially increase during the downturn in home sales and total inventory did not accumulate to the same extent as in prior slowdowns.
As a result, he said, market conditions around the province are tightening and home prices will likely face upward pressure as demand continues to firm.
In 2020, the BCREA expects the average price will rise by 4.8 per cent to $734,000.