Balanced Market
Here is the latest news release from the British Columbia Real Estate Association (BCREA):
Vancouver, BC – November 24, 2006
BCREA figures indicate BC’s residential sales volume on the Multiple Listing Service® (MLS®) reached $2.96 billion in October, up 7 per cent from October 2005. The increase in sales volume is attributable to rising home prices over the last 12 months, rather than an elevated number of sales. The average home price in BC rose to $410,728 in October, up 20 per cent from October 2005. Sales dipped 11 per cent to 7,196 units last month, the fourth straight month of decline in BC home sales.
“Home sales in the province are definitely easing back from last year’s record-breaking pace,” noted Cameron Muir, BCREA Chief Economist. “While a strong provincial economy continues to underpin consumer demand, affordability concerns are keeping some would-be homebuyers on the sidelines.”
BC’s robust job growth, historically low unemployment, and wage and salary increases that are outpacing inflation continue to serve as solid fundamentals for the housing market. Affordability remains an issue; however, as persistently low mortgage interest rates and high consumer confidence have contributed to a significant run-up in home prices over the last several years. As a result, some potential homebuyers are finding it increasingly difficult to afford their preferred home type in the location they desire.
“The BC housing market is now trending toward more balance between buyers and sellers,” added Muir. “The combination of less frenetic buying activity and a moderate increase in the number of homes for sale is providing more choice for homebuyers and easing upward pressure on home prices.”
Although year-to-date figures have declined 8 per cent to 85,399 units from last year (see below), BCREA estimates home sales will reach 96,600 units in 2006, the second highest number ever recorded for the province. Source: BCREA