VANCOUVER (NEWS 1130) – If you’re putting off buying a home, a local credit union is warning it likely isn’t going to get any cheaper.
With tighter mortgage rules expected to limit the buying power of many people, and with interest rates ticking higher, you might expect prices to drop in the new year. Unfortunately, that may not be the case.
Central 1 Credit Union is forecasting a rise in prices once again, including here in BC where province-wide the view is that prices will go up five per cent next year.
“So we do expect to see apartments come off after a very strong gain in 2017,” says Central 1 Deputy Chief Economist Bryan Yu. “That being said, were still seeing very much a ‘seller’s market’ in Greater Vancouver, in the multi-family sector. And what that would mean is that prices will continue to rise.”
And when we talk about Greater Vancouver specifically, Yu says prices are expected to increase by seven per cent.
“We tend to see a very much an inventory issue,” he explains. “There’s very few active listings in the market. Demand is still quite strong and that’s a reflection of a lot of job growth in the region, as well as again people international immigration coming to the area and low interest rates.”
Central 1 is making these projections despite the prospect of interest rate hikes and tighter borrowing rules that kick in next year.
According to the credit union, median home prices will rise to $735,000 in 2018 in the Greater Vancouver region specifically.