Real estate prices rise, but demand may be waning

Real estate prices rise, but demand may be waning

On Behalf of Porter Ramsay LLP | Nov, 18, 2020 | Real Estate Law

Demand for single-family homes may be waning in the nation’s Pacific province. It’s true that real estate sales in British Columbia were significantly up this year from 2019 — up by more than 43%; however, deals this past September came in at 11,368, which is 2.8% lower. British Columbia Real Estate Association’s (BCREA) chief economist believes this drop could mean that pent-up demand is beginning to show signs of waning, even though the job market and sales are still showing strength.

The real estate market was incredibly active in British Columbia this past October, with the average price of a home continuing to escalate. The average price for a single-family home in the province now sits at $812,960 — a 1.2% increase from the same time last year. When compared to the $722,333 average price in October last year, that is a 12.5% increase. 

Some people are looking to upsize for more space since more time is being spent at home these days. It seems, too, that the housing forecast for the fourth quarter this year shows that prices will continue to rise. BCREA predicts that, by the end of 2020, prices will have risen by nearly 10% over last year. Experts don’t see that changing anytime soon.

With more British Columbia residents transacting in real estate comes the need for legal advice and guidance on these purchases and sales. Having some knowledge of the laws that accompany contracts may benefit both buyers and sellers. Having a lawyer weigh in on contracts and ensure a smooth closing is necessary for any positive real estate experience.

Share this article