British Columbia’s housing market is facing a challenging 2023 before a strong recovery in 2023, according to the province’s real estate association. 

In its 2023 First Quarter Housing Forecast Update, the British Columbia Real Estate Association (BCREA) forecasts residential sales will decline 7.1 per cent to 75,150 units this year. 

In 2024, BCREA economists are predicting a rebound, predicting sales will rise 23.8 per cent to 93,025 units. 

Economists note that while inventory levels have increased since the beginning of 2022, they remain low compared to historical levels, despite a sharp decrease in sales. 

 

 

BCREA forecasts that home prices will remain relatively stable throughout 2023. However, year-over-year comparisons will register negative for much of 2023, likely resulting in negative annual price growth even if monthly prices begin to recover as expected later this year, according to the report.

“A slowing economy and still elevated mortgage rates are expected to keep housing activity lower than normal through much of 2023,” said BCREA Chief Economist Brendon Ogmundson. “However, we expect a strong recovery, boosted by an expected decline in mortgage rates and record high immigration that will carry significant momentum into 2024.”

 

Read the full report here.