Rennie survey finds falling consumer expectation of higher home values in Metro Vancouver

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      A recent survey finds less optimism that home values in Metro Vancouver will continue to rise.

      The poll was conducted by the Mustel Group for rennie, a major real-estate marketing company.

      Results showed a “shift” in consumer sentiment compared to a previous survey in October 2021.

      Specifically, 69 percent of respondents in October said that they expected home values to be higher in one year.

      The April 2022 survey showed a lesser share of 62 percent who believe that residential properties will be worth more in a year.

      In addition, the proportion of respondents who indicated they expect home values to be lower in one year doubled between October and April, from eight percent to 16 percent.

      A rennie brief released Tuesday (May 31) stressed that most are confident that the local housing market will remain “resilient”.

      “While these changes are material—and likely a function of some combination of rising interest rates, growing economic uncertainty, and home price fatigue—it is worth underscoring that almost 2/3 of respondents continue to anticipate that home values will rise in the next 12 months,” the rennie paper stated.

      The material was released on the same day that the B.C. Real Estate Association issued its latest housing forecast.

      The BCREA indicated that home sales in 2022 are likely to be 22.1 percent lower than 2021 in light of rising interest rates.

      The association also stated that prices may become “somewhat volatile”.

      However, the forecast anticipates that the average price of a B.C. home will post an annual increase of 11.5 percent in 2022.

      The average price of a B.C. home in 2022 is expected to reach $1,034,400, up from the previous level of $927,558 in 2021.

      Also, average price in 2023 is forecast to post a 0.8 percent annual increase to $1,042,900.