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Gloomy economic outlook, elevated mortgages drag down 2023 B.C. housing market: BCREA

Conditions are expected to rebound in 2024
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Houses are covered with snow as the downtown skyline is seen in the distance, in Vancouver, on Wednesday, December 21, 2022. The British Columbia Real Estate Association says the chill across the province’s real estate sector will drag on through 2023, but it calls for a strong rebound next year. THE CANADIAN PRESS/Darryl Dyck

The British Columbia Real Estate Association says the chill across the province’s property sector will drag on through this year, but it calls for a strong rebound in 2024.

The association makes the prediction in its housing forecast for the first quarter of the year.

Association chief economist Brendon Ogmundson blames expected sluggish sales this year on a slowing economy and ongoing, elevated mortgage rates.

But he is looking forward to 2024 when the association says a healthier economy, lower mortgage rates and “record high” immigration should fuel home sales again.

The forecast predicts residential sales in B-C will skid 7.1 per cent this year before surging nearly 24 per cent in 2024.

It says even though home listings remain scant, prices have fallen because of what the association calls the “abrupt shift” in market conditions, and it says rates should stay “relatively flat” for most of this year.

RELATED: ’Dramatic imbalance’ between supply and demand at core of B.C.’s housing problem: analyst





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