The average price of a home sold in B.C. in 2021 is forecast to rise 14.3 per cent to $893,800, according to the BCREA’s second quarter housing forecast. (Source: BCREA Economics)

The average price of a home sold in B.C. in 2021 is forecast to rise 14.3 per cent to $893,800, according to the BCREA’s second quarter housing forecast. (Source: BCREA Economics)

Experts now predict 33.6% rise in B.C. home sales for 2021

BCREA economists also predict home prices to increase by 14.3%

By Paul Henderson

Black Press

There is little question that 2021 will be the biggest year ever in British Columbia real estate sales with average home sale prices similarly hitting new heights.

But while the B.C. Real Estate Association (BCREA) forecasts fading momentum by the end of the year to reduce the number of sales in 2022, prices may continue to rise.

After the immediate lull in sales of just about everything in spring of 2020, several months into the COVID-19 pandemic, home sales in all markets in the province took off.

“The record-setting pace of home sales that began in late fall of 2020 has continued into 2021 with markets across the province eclipsing previous monthly sales records by wide margins,” according to the BCREA’s second quarter housing forecast.

The 94,013 sales in B.C. in 2020 represented a 21.5 per cent increase over 2019, and the average sale price of $781,765 was a 11.6 per cent jump over the $699,000 in 2019.

And 2021 is proving to be even hotter with the BCREA predicting 125,600 home sales, a 33.6 per cent increase over 2020. The average home price is forecast to hit $893,800 in 2021, a 14.3 per cent increase over 2020.

Those sales and price forecasts nearly double predictions made in the first quarter.

RELATED: 16% boom predicted for B.C. real estate sales in 2021: experts

Low mortgage rates coupled with buyers flocking to less populated markets led to the big increases seen over the last eight months. That could slow with a creep up in interest rates and a catch-up in supply, but not any time soon.

“The trajectory of home sales in the second half of 2021 and for 2022 will be highly dependent on the evolution of Canadian mortgage rates,” the BCREA forecasts. “Home sales will likely slow toward the second half of this year. However, even factoring in a second-half slowdown, provincial unit sales are still projected to reach a record.”

As for 2022, the BCREA forecasts a 20.3 per cent drop in sales to 100,150, but a 3.1 per cent increase in the average price of all home types to $921,800.

Broken down by region, BCREA predicts the small Chilliwack and District Real Estate Board to see the biggest increase in sales in 2021 up 51.6 per cent year over year, followed by Greater Vancouver at 40.8 per cent, Powell River Sunshine Coast at 38.2 per cent, and the Interior and BC Northern at 31.9 and 31.1 per cent respectively.

The average price of a home in Greater Vancouver in 2021 is forecast to be $1.174 million, with the Fraser Valley at $969,400, and Victoria at $866,200.

“The supply shock experienced by BC markets during the initial phase of the COVID-19 pandemic and a sustained listings drought continues to drive price increases in 2021. This is particularly true in smaller markets, many of which have seen inventories of homes for sale fall to all-time lows.”

RELATED: Chilliwack housing market projected to be among B.C.’s hottest in 2021


Do you have something to add to this story, or something else we should report on? Email:
editor@theprogress.com

@PeeJayAitch
Like us on Facebook and follow us on Twitter.

Just Posted

A screenshot of the First Peoples Cultural Councils First Peoples’ Map. (First Peoples Cultural Council)
Online resource blends B.C.’s Indigenous language, art and culture

North Saanich advisor says initiative supports urgent need to preserve Indigenous languages

General manager Lindsey Pomper says Sidney’s Star Cinema cannot wait welcome audiences when it reopens June 18, amid an easing of public health measures. (Wolf Depner/News Staff)
Sidney’s Star Cinema raises curtain for the first time after months in the darkness

Iconic theatre to reopen at half capacity for Friday night showing

A dogs in parks pilot study unanimously approved by Saanich council will evaluate how park space can best be shared between dog owners and non-owners alike. (Photo by Megan Atkins-Baker/News Staff)
Saanich to study park-sharing strategy between those with and without pets

District-wide People, Parks and Dogs study to produce recommendations by fall

Staff member Lena Laitinen gives the wall at BoulderHouse a workout during a media tour on June 16. (Rick Stiebel/News Staff)
BoulderHouse raring to rock Langford

Popularity of bouldering continues to climb across Greater Victoria

GardenWorks nursery in Oak Bay at its home until August. (Black Press Media file photo)
GardenWorks puts down new roots in Oak Bay this summer

Nursery shifts down The Avenue to fill former fitness studio space

The BC SPCA Wild Animal Rehabilitation Centre in Metchosin saw 16 fawns come through in May, with another four in the first four days of June. (Courtesy Wild ARC)
An abandoned fawn doesn’t mean it’s orphaned, reminds Greater Victoria wildlife expert

20 orphaned fawns turned in to Wild ARC in Metchosin so far this season

(Black Press Media file photo)
POLL: When was the last time you visited the mainland?

The films are again lighting the screens at local theatres, the wine… Continue reading

Anyone with information on any of these individuals is asked to call 1-800-222-TIPS (8477) or visit the website victoriacrimestoppers.ca for more information.
Greater Victoria Crime Stoppers wanted list for the week of June 15

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Tk’emlups te Secwepemc Chief Rosanne Casimir stands outside the former Kamloops Indian Residential School after speaking to reporters, in Kamloops, B.C., on Friday, June 4, 2021.THE CANADIAN PRESS/Darryl Dyck
Kamloops chief says more unmarked graves will be found across Canada

Chief Rosanne Casimir told a virtual news conference the nation expects to release a report at the end of June

A woman wears a vaccinated sticker after receiving a COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS/Jonathan Hayward
B.C. ranks among highest in world in COVID-19 first-dose shots: health officials

More than 76% of eligible people have received their 1st shot

An artists conception of the new terminal building at the Pitt Meadows Regional Airport.
Air travel taking off in B.C., but lack of traffic controllers a sky-high concern

There will be demand for more air traffic controllers: Miller

Canadian Armed Forces experts are on their way to North Vancouver after a local homeowner expressed worry about a military artifact he recently purchased. (Twitter DNV Fire and Rescue)
Military called in to deal with antique ‘shell’ at North Vancouver home

‘The person somehow purchased a bombshell innocently believing it was an out-of-commission military artifact’

Amy Kobelt and Tony Cruz have set their wedding date for February, hoping that more COVID-19 restrictions will have lifted. (The Macleans)
B.C. couples ‘gambling’ on whether COVID rules will let them dance at their wedding

Amy Kobelt and Tony Cruz pushed back their wedding in hopes of being able to celebrate it without the constraints of COVID-19

Most Read