Housing sales in Greater Vancouver are expected to climb 11% this year to 34,600 units, and the average BC Multiple Listing Service (MLS) price will increase by 2.4% to $692,000, according to a forecast released today by the BC Real Estate Association (BCREA).
“Greater Vancouver is the strongest market in the province right now,” BCREA chief economist Cameron Muir said. “It’s now trending into seller’s market conditions, and that’s putting some upward pressure on pricing.”
In 2010, Greater Vancouver’s unit sales and average MLS listing price both climbed by 14%, to 6,549 units, and $675,853, respectively.
“On the pricing side, certainly we’ve seen some dramatic increases in average prices in Vancouver, but that’s attributable to a higher proportion of luxury or high-end homes selling,” Muir commented. “We’ve seen a significant amount of demand in the Westside and Richmond, particularly for single detached homes, which skews that average price much higher.”
Muir noted that Vancouver’s market has rebounded more dramatically than in B.C.’s interior.
“Vancouver benefits from having a significant influx of immigrants, which helps drive housing demand,” he said. “As well, it’s the most diversified economy in the province, and as a result, economic growth and employment levels in Vancouver are relatively strong.”
According to the forecast, the BCREA expects to see unit sales across the province increase by 8.4% in 2011 to 80,900 units, with the average MLS price rising by 2.3% to $517,000.