B.C. real estate forecast shows dip in prices in 2023

You may want to hold off on buying a home until the new year, with forecasts showing prices in B.C., including the Vancouver area, are set to drop.

The BC Real Estate Association says the average sale price across the province is expected to drop about five per cent in 2023.

The number of homes listed for sale is also set to fall.

“The factors that drove unprecedented housing market activity over the past two years, including record low mortgage rates, buyer preference for extra space, and the ability to work remotely, are now unwinding,” said BCREA Chief Economist Brendon Ogmundson. “As a result, there has been a significant shift in the housing market, which we anticipate will continue through 2023.”

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The BCREA notes that Multiple Listing Service (MLS) sales are forecast to drop 34.4 per cent this year from what was a record high in 2021. They are expected to drop a further 11.4 per cent in the new year.

Despite the predicted fall, home prices are set to remain high. In the Greater Vancouver region, the BCREA says the average MLS price in 2023 will remain above the $1.1 million mark in 2023.

High-interest rates continue to put pressure on Canadians’ finances, and that pressure continues to be translated into the real estate market. The BCREA says as people continue to struggle financially, it anticipates “market activity is going to fall below normal levels next year.”

While slow sales have led to an increase in inventory, the association notes that’s over record lows.