A new housing forecast by the B.C. Real Estate Association lays out rosy prospects for average home prices in the Lower Mainland.
The region serviced by the Real Estate Board of Greater Vancouver, Fraser Valley Real Estate Board, and Chilliwack and District Real Estate Board may see average prices in 2021 surpass levels set in the previous year.
In its first quarter housing forecast, the BCREA predicts that average home price in REBGV areas is forecast to rise to $1,120,000 this year.
The figure represents a five percent improvement over the average price of $1,066,199 in 2020.
The BCREA also anticipates that the market served by the FVREB will mark a higher rate of increase of nine percent in 2021.
This means that average home prices in the Fraser Valley may reach $900,000 compared to $826,005 in 2020.
Over in the Chilliwack area, the BCREA anticipates that average home price will increase to $620,000 in 2021.
This marks a 7.4 percent improvement over $577,430 in the previous year.
Overall, across the province, the average price of a B.C. home is forecast to rise 7.7 percent in 2021 over 2020.
In a media release Monday (January 25), BCREA chief economist Brendon Ogmundson said that the province’s “strong economic recovery and record-low mortgage rates will continue to drive strong demand”.
“After an unprecedented and often surprising performance in 2020, the provincial housing market is set up for a very strong year in 2021,” Ogmundson said.
Also, home sales are expected to increase to 108,680 units in 2021, representing a 15.6 percent jump over 94,021 sales in 2020.