Home Sales in BC Post Strongest March in Eight Years

The British Columbia Real Estate Association reported that a total of 9,101 residential unit sales were recorded by the Multiple Listing Service in March, up 37.6 per cent from the same month last year. Total sales dollar volume was $5.8 billion, an increase of 57.1 per cent compared to a year ago.

The average MLS residential price in the province rose to $641,799, up 14.1 per cent from the same month last year. BC home sales climbed significantly in March and  more homes traded hands last month than any March since 2007.

On a seasonally adjusted basis, March has posted the most home sales of any month since December of 2009. Great news! With rock bottom interest rates and rising consumer confidence having strengthened housing markets in most regions of BC.

Many of the board areas are now exhibiting a seller's market conditions with home prices advancing well above the overall rate of inflation. During the first quarter, BC residential sales dollar volume was up 33.2 per cent to $12.7 billion, compared to the same period last year.

Residential unit sales were up 22.5 per cent to 20,139 units, while the average MLS residential price was up 8.7 per cent at $630,435.

BC Housing Demand Remained Elevated in February

The British Columbia Real Estate Association (BCREA) reported that a total of 6,661 residential unit sales were recorded by the Multiple Listing Service in February, up 19.4 per cent from the same month last year. Total sales dollar volume was $4.3 billion, a nice increase of 24.8 per cent compared to last year. The average MLS residential price in the province rose to $639,405, up 4.5 per cent from the same month last year. 

Consumer demand remained robust in February. After several years of below-average activity, home sales are now trending above long-term levels. The total active listings on the market were down 7.5 per cent from a year ago, with fewer homes for sale, combined with elevated consumer demand has the housing market firmly in balanced conditions. 

Year-to-date, BC residential sales dollar volume was up 18 per cent to $6.9 billion, compared to the same period last year. Residential unit sales were up 12.4 per cent to 11,038 units, while the average MLS residential price was up 5.0 per cent at $621,065.

2014 FINISHES STRONG!

12.8%

The month of December showed a strong finish to the year with sales up almost 24% over the same time last year with 312 properties changing hands. With only 346 new listings that were added to the inventory, pretty much the same as last December, resulting in 2,657 listings to start the new year off with, down considerably from 3,210 at the end of 2013.

Overall, 2014 saw an increase of 21.31% of units sold, volume was up a staggering 31.59% yet listing inventory is down over 17%. What that translates to is an increased price for residential properties on average of 7%, and the median increase of 6%; both pretty similar.

The average sales price of a single family home for 2014 is $498,563, a townhouse is $361,453 and condos $243,443.

BC Housing Market to End Year with Balanced Conditions

 The British Columbia Real Estate Association reports that there were a total of 5,972 residential unit sales were recorded by the Multiple Listing Service in November, up 8.8 per cent from November 2013. Total sales dollar volume was $3.4 million, an increase of 12.1 per cent compared to a year ago. The average MLS residential price in the province rose to $574,694, up 3.1 per cent from the same month last year.

BC home sales were strong again in November.With improving economic conditions, strong consumer confidence and low mortgage interest rates which are providing a solid foundation for elevated consumer demand. The market conditions have improved province wide, with most regional markets now in the mid to high range of a balanced market. Year-to-date, BC residential sales dollar volume was up 22.1 per cent to $44.8 billion, compared to the same period last year. Residential unit sales were up 15.3 per cent to 78,973 units, while the average MLS residential price was up 6.0 per cent at $567,292.

Market Report for September.

The British Columbia Real Estate Association (BCREA) reports that there were a total of 7,636 residential sales were recorded by the MLS in September, up 17.5 per cent from September 2013. Total sales dollar volume was  also up $4.4 billion an increase of 25.8 per cent compared to a year ago. The average residential price in the province rose to $574,641, up 7.1 per cent from the same month last year. 

Consumer demand remains strong in most BC regions.  More homes traded hands last month in BC than any September since 2009 while the Okanagan had its best September in nine years which is great news for us here in the Okanagan. With Population growth, low interest rates and strengthening economic conditions continue to be supportive of housing demand. 

Year-to-date, BC residential sales dollar volume was up 23.2 per cent to $37 billion, compared to the same period last year. Residential unit sales were up 16 per cent to 65,353 units, while the average MLS residential price was up 6.2 per cent at $565,655.

BC Home Sales Post Strongest October in Four Years

The British Columbia Real Estate Association (BCREA) reports that a total of 6,673 residential sales were recorded by the Multiple Listing Service® (MLS®) in BC during October, up 26.5 per cent from October 2012. Total sales dollar volume was 34.5 per cent higher than a year ago at $3.6 billion. The average MLS® residential price in the province was $540,432, up 6.3 per cent from October 2012. 

“The fall housing market is shaping up to be the most active in four years,” said Cameron Muir, BCREA Chief Economist. “Persistently low mortgage interest rates and an element of pent-up demand have driven home sales higher in the province’s large Lower Mainland and Vancouver Island markets.”

“While the rebound in consumer demand has been significant, home sales are trending near the long-term average and any continued acceleration will depend on stronger economic and employment growth,” added Muir.

Year-to-date, BC residential sales dollar volume was up 8.2 per cent to $33.6 billion, compared to the same period last year. Residential unit sales were up 5.1 per cent to 63,020 units, while the average MLS® residential price was up 2.9 per cent at $533,321. 

Courtesy of BCREA

Sales Continue to Soar

September continued the trend we have seen throughout a good part of the year with sales 48% ahead of September last year. That puts the real estate board activity at 11%
overall ahead of last year. At the same time, the listing inventory continues to decline each month, however, there certainly continues to be a substantial supply of good properties for sale which helps keep prices stable.

As we move into the fall season, activity is expected to slow down some but we predict activity will still continue to be stronger than last year. There appears to be greater consumer confidence which always generates more spending activity. With entry level properties being the most active and interest rates still low, it is expected more first time buyers will venture into purchasing their first home. Even though sale prices have remained stable so far, one has to wonder when we may see real estate prices starting to edge upward. With more sales happening and listing inventory declining, sooner or later we will start to see upward movement. Some are predicting next spring, others say we are more than a year away. Regardless, the good news is prices have remained constant now for quite awhile which has allowed more buyers the opportunity to enter the market.

Courtesy of Cliff Shillington

Kelowna Real Estate

The Kelowna real estate sales are up and continues to climb in August with sales and dollar values on the rise. Just released figures from the Okanagan Mainline Real Estate Board shows that last month, sales of all kinds residential, commercial and institutional numbered 395 up from 305 in August of 2011.

The value of properties changing hands was $172.1 million a jump from the $121.2 million in August 2011. The growth that started in the spring has continued through the summer with real estate sales recovering. The average selling price of a single family home in August was $488,100 up from $472,700 in August 2011. Condo's average was $260,400 up from $241,000 and townhouses average up slightly $353,900 from $353,200 in August 2011

How's the Market for July?

Sales Continue to Outpace Last Year July continued the trend of more sales taking place than last year at this time. In fact, the local real estate board shows that sales, year to date, are up more than 10% with July actually showing gains of almost 14% ahead of July last year. This current activity is encouraging to see considering the Federal Government tightened lending practices for mortgages which appears to have had an effect on the Greater Vancouver market which is down 18% and the slowing of the red hot Toronto market. Prices continue to hold steady in Kelowna and area despite this increased level of activity and slightly lower levels of inventory. Buyers still have the upper edge in our market, but we are certainly getting closer to the desirable balanced market. Albertans have returned to the valley during this past year and most recently we are seeing more buyers coming out of the Lower Mainland.

But, our market is definitely locally driven which is always best for the community overall. Earlier this month, as mentioned above, the Federal Government made changes to the mortgage qualifying process by reducing the amortization period from 30 years to 25 years and the amount of home equity interest loans from 80 % to 65%. It was felt that our level of debt was just getting too high and that these measures were needed to reign in our spending. The reduced amortization period likely takes away about 7% of the potential buyers, primarily the first time home buyers because of the higher monthly mortgage payments. Or these buyers have to reduce their expectations as to what they can purchase in the existing marketplace.
As we move half way through summer, with a traditionally quieter August, it will be interesting to see if we can maintain the strong year we are having.
Alberta is doing well, optimism seems to be prevalent and our valley just continues to hold so much attraction to so many people that we expect to move into the fall on a positive note.