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

John Archie plans to share his experiences of residential school and life on the rez at an event on June 19. (Kelly Sinoski photo -100 Mile Free Press)
Tsq’escen to share stories of ‘life on the rez’

John Archie to share his experiences in event Saturday

100 Mile House Fire Rescue responds to a grass fire on private property near Canim-Hendrix Road. (Patrick Davies photo - 100 Mile Free Press)
Small fire off Canim-Hendrix Road extinguished

The small grass fire was reported by neighbours and quickly brought under control

A tent housing a mobile vaccination clinic. (Interior Health/Contributed)
Over 5K jabbed at Interior Health mobile COVID-19 vaccine clinics

The clinics have made stops in more than 40 communities since launching last week

Provincial Health Officer Dr. Bonnie Henry talks about B.C.’s plan to restart the province during a press conference at Legislature in Victoria, Tuesday, May 25, 2021. THE CANADIAN PRESS/Chad Hipolito
Interior Health COVID-19 cases falling slower than the rest of B.C.

More than a third of provincial cases announced Thursday came from the Interior

A Category 3 fire ban will go into effect across the entire Cariboo Fire Centre beginning noon on Monday, June 21. (Pixaby photo)
Category 3 fire ban extends across entire Cariboo Fire Centre June 21

Campfires are still permitted, but no larger than half a metre high by half a metre wide

A small pod of Pacific white-sided dolphins pass by close to shore in Campbell River June 16, 2021. Still capture from video courtesy of Kimberly Hart
VIDEO: Dolphin sunset captured from Vancouver Island shore

Spectacular setting for view of travelling pod of Pacific white-sided dolphins

Police are asking for public assistance in locating Anthony Graham who has been charged with the murders of Kamloops brothers Carlo and Erick Fryer. (RCMP photo)
2 charged, suspect at large in killings of B.C. brothers linked to gang activity: RCMP

Kamloops brothers Erick and Carlo Fryer were found deceased in May on a remote Okanagan road

Albert Health Minister Tyler Shandro and Alberta Premier Jason Kenney unveil an opening sign after speaking about the Open for Summer Plan and next steps in the COVID-19 vaccine rollout, in Edmonton, Friday, June 18, 2021. THE CANADIAN PRESS/Jason Franson
Alberta 1st province in Canada to lift all COVID-19 public health restrictions

70.2% of eligible citizens 12 and older in the province have received a dose of the vaccine

Fraser Health registered nurse Ramn Manan draws a dose of the Pfizer COVID-19 vaccine into a syringe at a walk-up vaccination clinic at Bear Creek Park, in Surrey, B.C., on Monday, May 17, 2021. THE CANADIAN PRESS/Darryl Dyck
‘Honour our fathers’ with COVID-19 vaccine protection, B.C. urges

109 new cases Friday, 75 per cent of 12 and up immunized

(Paul Henderson/ Chilliwack Progress)
Trutch Avenue in Chilliwack to be renamed to remove racist taint

New name to have Indigenous significance as Chilliwack takes new step toward reconciliation

Canadian Prime Minister Justin Trudeau is seen during a joint news conference following the EU-Canada Summit, in Brussels, Belgium, Tuesday June 15, 2021. Trudeau says Canada is on track now to have 68 million doses delivered by the end of July, which is more than enough to fully vaccinate all 33.2 million Canadians over the age of 12. THE CANADIAN PRESS/Adrian Wyld
Vaccine deliveries enough to fully vaccinate all eligible Canadians by end of July

Three in four eligible Canadians now have their first dose, nearly one in five fully vaccinated.

Chief Public Health Officer Theresa Tam listens to a question during a news conference, in Ottawa, Tuesday, Jan. 12, 2021. The number of confirmed COVID-19 cases attributed to the highly contagious Delta variant grew in Canada this week. THE CANADIAN PRESS/Adrian Wyld
Canada’s public health agency reports spike in confirmed cases of Delta variant

More than 2,000 cases of the variant confirmed across all 10 provinces and in one territory

Most Read