B.C. home prices forecast to rise further 8.5 per cent

February 8, 2022



British Columbia, which already has the most expensive housing in Canada, will see average prices increase a further 8.5 per cent in 2022—going above $1 million provincewide for the first time, according to the latest forecast from the B.C. Real Estate Association (BCREA).
Residential sales in the province are forecast to decline 17 per cent from a record high in 2021 to 103,250 units in 2022. In 2023 home sales are forecast to fall an additional 12 per cent to 90,200 units.
“We expect home sales in 2022 to moderate from the frenetic pace of 2021,” said BCREA chief economist Brendon Ogmundson. “However, sales activity will remain high by historical standards.”
The B.C. housing market is entering 2022 with the lowest level of active listings on record and significant demand-side momentum. Strong sales should persist through the first few months of the year and supply will remain severely limited. As a result, continued upward pressure on home prices is expected in all markets.
Home prices are expected to rise by 8.5 per cent in 2022 with much of that gain happening in the first half of the year. With sales activity normalizing in 2023 and inventories rebuilding, market conditions around the province should improve and price growth is expected to slow to 2.7 per cent.
According to the BCREA forecast, the average composite home price in the province will hit $1.01 million in 2022 and top $1.28 million in Greater Vancouver.