The British Columbia Real Estate Association (BCREA) says a decline in real estate sales is forecast for 2018.
This follows an 8.8% rise in real estate sales in 2017, after a record-breaking 2016 that saw the 10-year average number of sales beaten by 28,000 homes.
According to the BCREA, homebuyers in the Okanagan are almost as likely to originate from outside the region as they are from within it.
About 25% of homes are sold to buyers from other regions of the province. Another 16% are bought by people from other provinces.
“A rising interest rate environment combined with more stringent mortgage stress tests will reduce household purchasing power and erode housing affordability,” Muir said in a news release.
The weakening consumer demand for homes can be attributed to the steady rise of home prices in the province along with a rising interest rate environment and more stringent mortgage stress tests says Muir.
According to the British Columbia Real Estate Association, the average residential price in the province is forecast to increase 3.1% this year, and a further 4.6% next year, to $745,300.
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