Nation's average prices skewed higher by expensive Metro Vancouver sales, agency says
Expensive home sales in Metro Vancouver have skewed average sale prices upward for B.C. and Canada, according to the Canadian Real Estate Association.
Although sales activity in the first quarter of 2011 came in largely as expected, CREA said Monday, multimillion-dollar property sales in Greater Vancouver have surged unexpectedly, prompting the average price forecast to be revised higher.
CREA said the national average home price is forecast to rise four per cent in 2011 and nine-tenths of a per cent in 2012, to $352,500 and $355,800 respectively. The agency said this marks an increase from the previous forecast, and underscores the significant effect that investment in B.C. is having on national results.
“The extent to which high priced sales activity in Vancouver will pitch up the average price locally, for British Columbia and nationally will likely diminish in the next couple of months in line with a seasonal increase in national activity,” CREA's chief economist Gregory Klump added in a statement.
“That said, foreign investment in Vancouver residential real estate is showing no signs of slowing, so it seems likely to remain a prominent market feature for some time.”
CREA said national sales are expected to reach 441,100 units in 2011, a decline of 1.3 per cent from 2010.
CREA said that number represents a slight improvement from the 1.6-per-cent decline forecast by CREA in February, due to stronger than expected activity in B.C. in the first quarter of 2011.
CREA forecasts that national sales activity will increase by 2.6 per cent in 2012 to 452,500 units.
CREA said that interest rates should rise later this year.
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