August Market Report.

The British Columbia Real Estate Association (BCREA) has reported that a total of 7,341 residential sales were recorded by the Multiple Listing Service (MLS) in August, were up 7 per cent from August 2013. Total sales dollar volume was $4.1 billion, an increase of 12.4 per cent compared to August 2013. The average MLS residential price in the province rose to $560,318, up 5 per cent from the same month last year. Consumer demand remained relatively busy in August.

The Okanagan and Chilliwack board areas posted the strongest year-over-year gain of 22 to 25 per cent in unit sales, while Victoria and Vancouver increase was lower around 10 per cent. Home sales last month were the highest for the month of August since 2009. With low mortgage rates, increased net-migration and improving economic conditions continue to drive housing demand in the province. Year-to-date, BC residential sales dollar volume was up 22.8 per cent to $28.5 billion, compared to the same period last year. Residential unit sales were up 15.8 per cent to 57,715 units, while the average MLS residential price was up 6.1 per cent at $564,466.

BC Home Sales Remain Subdued but Stable

The British Columbia Real Estate Association (BCREA) reports that a total of 3,410 residential sales were recorded by the Multiple Listing Service® (MLS®) in BC during January, up 1.8 per cent from December on a seasonally adjusted (SA) basis, but down 13.6 per cent compared to January 2012. Similarly, total sales volume increased 3.8 per cent SA, but declined 16 per cent from the same month last year. The average MLS® residential price in the province was $514,134, up 3.2 percent from December, however, down 2.7 per cent from a year ago.

"Despite a modest uptick in consumer demand last month, home sales have remained relatively stable at a noticeably lower level since last August," said Cameron Muir, BCREA Chief Economist. "Continuing low mortgage interest rates combined with an easing back of home prices in some areas is expected to trend home sales higher during the spring and summer months."

"The ratio of home sales to new listings is indicative of a balanced market at 42 per cent," added Muir. "However, there remains a backlog of existing home listings to either sell or be pulled off the market before supply and demand can be considered in check."
Dramatic swings in average price statistics caused by a surge and subsequent pullback in luxury home sales appear to be near an end. The year-over-year change in average prices now more closely reflects the home price indices in Vancouver and the Fraser Valley."

Great News

The Canadian Real Estate Association said that the national home price and sales activity this year will be higher than it had been previously forecast, following a strong spring.

They are now forecasting that 475,800 homes will be sold in 2012, up 3.8 per cent from 2011, compared with earlier expectations of a gain of only 0.3 per cent. The average home price to rise by 2.2 per cent compared to earlier thoughts that it would fall 1.1 per cent.

 "National activity over the spring months was stronger than anticipated. This clearly shows how the continuation of low interest rates is keeping home ownership affordable and within reach". CREA president Wayne Moen said.