BCREA forecasts rebound in home sales next year
VANCOUVER -- A new forecast from the British Columbia Real Estate Association shows home sales will continue to decline for most of the rest of the year, but see a marked bounce-back in 2021 as the market recovers from COVID-19.
The association released its 2020 Second Quarter Housing Forecast on Wednesday.
“The bright outlook for 2020 home sales has been upended by the COVID-19 pandemic and resulting recession,” said Brendon Ogmundson, the BCREA's chief economist, in a release. “However, as the economy 'reopens' and measures to mitigate the spread of COVID-19 are gradually eased, we expect home sales will start to rebound, aided by record-low mortgage rates and pent-up demand.”
The forecast says home sales are expected to decline 21 per cent this year, dropping down to 61,000 units. In 2019, 77,347 units were sold.
But that decline will be followed by a bump of over 45 per cent next year, hitting 88,500 units, according to the forecast.
The BCREA is also forecasting the average price of a home in the province will finish 2020 up 1.8 per cent, and jump another 5.6 per cent next year.