Home prices in the region will average $942,000 across the full year for all property types – a decline of 7.2 per cent from 2016’s average – before slowly climbing up again by about 2.2 per cent in 2018, the report predicted.

The Fraser Valley is predicted to see a drop in sales volume of 14.7 per cent for the whole of this year, followed by a further decline in 2018 of 4.1 per cent. Prices in the Fraser Valley are expected to see a three per cent average drop this year and a near-two per cent recovery in 2018.

The report said of the BC-wide predictions, “A moderation trend that began early in 2016, combined with tougher federal government mortgage qualification rules and the foreign buyer tax in Vancouver, is expected to limit consumer demand over the next two years. However, housing demand is expected to remain well above the 10-year average of 84,700 unit sales.”

The BCREA said that the average residential resale price in the province would drop five per cent to $657,000 this year, adding that this would stem from increased consumer demand for multi-family homes and a higher proportion of transactions occurring outside the Metro Vancouver market compared with recent years.

“Solid fundamentals continue to underpin housing demand in the province," said Cameron Muir, BCREA Chief Economist. "International trade, population growth and consumer confidence will be key economic drivers this year."

The report added, “While a significant number of new homes are under construction in the province, market conditions will continue to be tilted in favour of home sellers in many regions, while home builders scramble to complete existing projects.”

BCREA's forecast comes just two days after it released its analysis of January home sales across the province, which were down 23 per cent year over year, while average sale prices had dropped 17.5 per cent.

To read the full report including regional sales and price forecasts up to 2018, click here.

Related: Home Sales, Average Sale Prices Down "Significantly" Across BC: BCREA

Click here to read: ECONOMY, POPULATION GROWTH SUPPORT HOUSING DEMAND THROUGH 2018

Joannah Connolly
Joannah Connolly is the editor and content manager of REW.ca and Real Estate Weekly newspaper, and editor-in-chief of Western Investor and West Coast Condominium. She also moonlights as the host of the Real Estate Therapist call-in show on Roundhouse Radio 98.3FM every Saturday, 9-10am. A dual Canadian-British citizen, Joannah has 20 years of media experience in Vancouver and London, with a background in construction, architecture and business media. Like many of the residents of her newly adopted town, Joannah has a decidedly unhealthy passion for Vancouver real estate and is often to be found scouring property listings well above her pay grade.