Canadian real GDP grew by 0.7% in November, following a 0.4% increase in the previous month. This is the seventh consecutive monthly gain since the steepest drops in Canadian history were observed in March and April. This brings GDP 3% below the February pre-pandemic level of output. Fourteen of the twenty industries reported an increase in output. Multiple Listing Service® (MLS®) residential sales in the province are forecast to rise 15.6 per cent to 108,680 units this year, after recording 94,021 sales in 2020.
“After an unprecedented and often surprising performance in 2020, the provincial housing market is set up for a very strong year in 2021,” said Brendon Ogmundson, BCREA Chief Economist. “A strong economic recovery and record-low mortgage rates will continue to drive strong demand this year.”
On the supply side, new listings activity recovered through the second half of 2020, but not nearly enough to see any accumulation in overall inventory. With interest rates continuing at record lows, market conditions will start 2021 very tight, with the potential for strong price increases through the spring and summer until new supply comes online. We are forecasting a 7.7 per cent rise in the MLS® average price this year, followed by a further 3 per cent in 2022.
Report prepared by: Steve Neil
If you have any questions about the Central Okanagan real estate market, contact the Jurome Real Estate Group. They are more than happy to answer all your questions about buying and selling real estate in the Okanagan.
Photo Credit: Big White