VANCOUVER (NEWS 1130) – Home prices have been dropping for some time in British Columbia, but a new forecast indicates that trend won’t last forever. TD Bank expects prices in the province will bottom out at some point next year.
While home sales have started to show signs of a rebound in Metro Vancouver, when it comes to prices, we’ve seen a year of monthly declines in the benchmark price, according to the Real Estate Board of Greater Vancouver.
But a new provincial forecast from TD Bank indicates an expectation those declines will come to an end soon.
“Recent data has shown there’s been some improvement recently, sales are starting to pick up again. Some of the drivers that impact home demand have been turning in the other direction,” says TD economist Omar Abdelrahman.
He expects prices will stop dropping next year.
“You see a bit of a stabilization in existing home sales, the impact of these measures that we saw last year going to start to fade when it comes to home sales. We think prices will take a bit more to pick up again.”
Social media has been flooded with posts indicating homes are selling for well below their assessed value, but Abdelrahman still believes we’ll see an end to price declines in 2020.
“Early signs and data suggesting that demand is picking up, that existing home sales and the resale market are stabilizing and with that would naturally come an improved balance in the market through increased demand that would eventually show up in prices,” he says.
This comes as the BC Real Estate Association forecasts home prices will rise 4 per cent in 2020.