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

Shortreed Elementary received $40,000 from the Indigo Love of Reading foundation to purchase new books. (Special to The Star)
VIDEO: Shortreed one of 30 Canadian schools aided by Indigo’s Love of Reading program

Aldergrove school received $40,000, which will be put towards new books for the library

Students staged a flash mob on the last day of dancing at Lisa’s School of Dance in Langley City on Saturday, June 19. (Dan Ferguson/Langley Advance Times)
VIDEO: Final dances held at Lisa Dew’s dance school in Langley City

After 35 years, the school has been forced to close due to the bottom-line impact of the pandemic

Jessica Horst, a volunteer with the Bertrand Creek Enhancement Society, picked Scotch Broom at Jackman Wetlands on Wednesday night. (Lisa Dreves/Special to The Star)
Scotch broom removal a big task six years in the making at Jackman Wetlands

Volunteers filled a truck-full of invasive shrub growing rampant in Aldergrove park

Health and safety protocols for arriving international travellers are strict and don’t consider reasons for travel, says a letter writer. (Black Press Media files)
LETTER: Langley performer irked by ever-changing, inconsistent COVID rules

Letter writer feels she had not choice but to move to Mexico to ride out pandemic

A fawn separated from his mother by a well-meaning homeowner in Maple Ridge is a cautionary tale, say Conservation officers and staff at Langley’s Critter Care wildlife sanctuary. (Critter Care/Special to the Langley Advance Times)
Maple Ridge fawn in Langley wildlife sanctuary after separation from mother

Wildlife officials say moving a fawn is not a good idea

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

FILE – Most lanes remain closed at the Peace Arch border crossing into the U.S. from Canada, where the shared border has been closed for nonessential travel in an effort to prevent the spread of the coronavirus, Thursday, May 7, 2020, in Blaine, Wash. The restrictions at the border took effect March 21, while allowing trade and other travel deemed essential to continue. (AP Photo/Elaine Thompson)
Feds to issue update on border measures for fully vaccinated Canadians, permanent residents

Border with U.S. to remain closed to most until at least July 21

A portion of the George Road wildfire burns near Lytton, B.C. in this Friday, June 18, 2021 handout photo. THE CANADIAN PRESS/HO, BC Wildfire Service *MANDATORY CREDIT*
Blaze near Lytton spread across steep terrain, says BC Wildfire Service

Fire began Wednesday and is suspected to be human-caused, but remains under investigation

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

(Black Press Media files)
Burnaby RCMP look for witnesses in hit-and-run that left motorcyclist dead

Investigators believe that the suspect vehicle rear-ended the motorcycle before fleeing the scene

Blair Lebsack, owner of RGE RD restaurant, poses for a portrait in the dining room, in Edmonton, Friday, June 18, 2021. Canadian restaurants are having to find ways to deal with the rising cost of food. THE CANADIAN PRESS/Jason Franson
Canadian restaurateurs grapple with rising food costs, menu prices expected to rise

Restaurants are a low margin industry, so there’s not a lot of room to work in additional costs

RCMP crest. (Black Press Media files)
Fort St. John man arrested after allegedly inviting sexual touching from children

Two children reported the incident to a trusted adult right away

Barbara Violo, pharmacist and owner of The Junction Chemist Pharmacy, draws up a dose behind vials of both Pfizer-BioNTech and Oxford-AstraZeneca COVID-19 vaccines on the counter, in Toronto, Friday, June 18, 2021. An independent vaccine tracker website founded by a University of Saskatchewan student says just over 20 per cent of eligible Canadians — those 12 years old and above — are now fully vaccinated. THE CANADIAN PRESS/Nathan Denette
At least 20% of eligible Canadians fully vaccinated, 75% with one dose: data

Earlier projections for reopening at this milestone didn’t include Delta variant

Most Read