Modest home price gains predicted in B.C. over next four years

Central 1 Credit Union projects two to three per cent increases for real estate to 2018

Housing prices in B.C. should rise modestly this year after stronger gains in 2014, according to a new forecast by Central 1 Credit Union.

The association of B.C. credit unions predicts a 2.5 per cent increase in resale home prices in 2015 and similar increases of between two and three per cent out as far as 2018.

Bryan Yu, senior economist with Central 1, sees continued strength in urban real estate markets.

“I think sky-high prices in Greater Vancouver have more room to grow with little risk of a significant downturn,” Yu said.

One trend he expects to continue is the divergence in price growth between detached houses and multi-family units.

“While condo markets have been soft, with median home values flat since 2010, detached values have surged,” Yu said. “Single-family housing is increasingly a luxury good detached from income drivers.”

His report predicts home prices in Metro Vancouver will continue to be underpinned by the scarcity of developable land, the growing population and international demand.

It says the collapse in the price of oil will be generally positive for real estate markets, because it leaves more discretionary money in consumers’ pockets.

But crude’s plunge is painful for Albertans and will restrain their demand for B.C. recreational property in the Interior and Vancouver Island.

The lower Canadian dollar, however, has made real estate here more affordable relative to the rising prices of U.S. homes, the report notes.

Central 1 expects no increase in interest rates until early 2016 but expects five-year rates will average 6.5 per cent in 2018.

“Record-low mortgage rates will not last indefinitely, but will remain low enough to underpin housing market demand this year and next.”

Just Posted

Wanted man crashes vehicle into a truck, continues to evade RCMP

South Okanagan RCMP are warning the public not to pick up any hitchhikers

UPDATE: Three new fires sparked in the South Okanagan- Similkameen

BC Wildfire Service is responding to a blaze off Olalla forest service road

Kelowna Ribfest launch faces animal rights protest

Animal advocates draw attention to abuse suffered by factory farm pigs

Super League Triathlon makes North American debut in Penticton

Making its North American debut, the event brings a new twist to the traditional sport

Big crowds mark Penticton Peach Festival success

Thousands enjoy free family fun at 71st annual Penticton Peach Festival

‘Queen of Soul’ Aretha Franklin has died

Publicist Gwendolyn Quinn reports Franklin passed Thursday at 9:50 a.m. at her home in Detroit

Searing memories of the Shuswap’s 1998 Silver Creek wildfire

Tales recounted from the battle against the blaze that nearly destroyed Salmon Arm

Italy says death toll will mount in Genoa bridge collapse

Authorities worried about the stability of remaining large sections of a partially collapsed bridge evacuated about 630 people from nearby apartments.

Former CIA Director: Trump worked with Russians and now he’s desperate

In an opinion piece in The New York Times, John Brennan cites press reports and Trump’s own goading of Russia during the campaign to find Democrat Hillary Clinton’s missing emails.

Church sex scandal: Abuse victims want a full reckoning

Since the crisis exploded in Boston in 2002, dioceses around the country have dealt with similar revelations of widespread sexual abuse.

Baloney Meter: is flow of asylum seekers at Canada-U.S. border a ‘crisis’?

“I think any time you have a government that allows 30,000 people over the course of a short period of time to come into Canada illegally, the impact that that has, that is a crisis,” said Conservative Leader Andrew Scheer.

B.C. RCMP say Kinder Morgan protest camp to be dismantled today

RCMP say they will enforce a court injunction today and remove Trans Mountain pipeline protesters who have been camped outside a Kinder Morgan terminal in Burnaby.

Shuswap’s Roots and Blues features unique collaborations this weekend

Festival favourites are the magical workshops where musicians jam who haven’t played together before.

Most Read