Based on BCREA's housing forecast for the second quarter, the housing market in BC is not doing well and is currently at a low-activity state. There are fewer sales and listings than usual. This has caused home prices to adjust after the sharp rise in interest rates with home sales starting the year down 50% from last year and still about 25% lower than usual. This may also affect the new home construction market, but long-term population growth is expected to keep housing starts higher than normal.
When the housing market is slow, people usually spend less money on home-related things like furniture and appliances. However, in British Columbia, retail sales have remained steady, possibly because people have been spending less for the past two years.
How much people spend in the next year will determine how well the economy performs.
It is unclear if the economy will have a recession this year, but there are many difficulties facing it that may lead to a significant slowdown. The BCREA prediction is that the B.C.'s economy will barely grow this year, with an increase in unemployment. However, we expect the slowdown to be short-term, and the economy to recover in 2024 as inflation becomes normal, interest rates decrease, and the housing market stabilizes.
You can read the full article here:
BCREA Housing Forecast - Second Quarter
Posted by Pinpoint Listings Marketing Group on
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