The British Columbia Real Estate Association (BCREA) released its 2022 First Quarter Housing Forecast Update on February 2, 2022.
Multiple Listing Service® (MLS®) residential sales in the province are forecast to decline 17 percent from a record high 2021 to 103,250 units this year. In 2023 MLS® residential sales are forecast to fall an additional 12 percent to 90,200 units.
“We expected home sales in 2022 do moderate from the frenetic pace of 2021,” said BCREA Chief Economist Brendon Ogmundson. “However, sales activity will remain high by historical standards.”
The BC housing market is entering 2022 with the lowest level of active listings on record and significant demand-side momentum. That means strong sales should persist through the first few months of the year and supply will remain severely limited. As a result, continued upward pressure on home prices is expected in all markets.
As a result, home prices are expected to rise by 8.5 percent in 2022 with much of that gain happening in the first half of the year. With sales activity normalizing in 2023 and inventories rebuilding, market conditions around the province should improve and price growth is anticipated to slow to 2.7 percent.