01/31/2013 12:00 EST | Updated 01/27/2014 10:59 EST

BC Real Estate To Rebound This Year: Group

British Columbia's real estate market is expected to rebound this year after dropping almost 12 per cent in 2012.

The B.C. Real Estate Association forecasts that B.C. real estate sales will see 71,450 homes sold this year, a 5.6 per cent increase over 2012 but still below the five-year average.

Home prices are also expected to slow to a 0.9 per cent decline after falling 8.2 per cent in 2012. Prices are then forecast to rise by 0.6 per cent in 2014.

Vancouver home sales, meanwhile, are expected to rise 10 per cent in 2013 after falling almost 23 per cent last year. Sales are expected to climb 9.6 per cent this year to 27,900 units after falling 22.7 per cent in 2012.

The association believes that a stronger global economy will stir demand for housing, making 2013 a "transition year."

The forecast is consistent with recent projections that show Chinese buyers could return to Vancouver's housing market sooner than later.

Rize Alliance Properties CEO and Huffington Post B.C. blogger Will Lin showed a Bloomberg chart indicating a direct correlation between Chinese GDP and Vancouver's housing market.

China's GDP rose 7.9 per cent in 2012, the first time it has increased in two years.

"If the trend holds, Bloomberg predicts, Vancouver's real estate prices should also soon rise," Lin wrote.

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