US & Canada

B.C. market maintains upward trend in home prices

 

Home sales in British Columbia dropped last month compared with the year-ago period, but the B.C. Real Estate Association stated that the prices remained unscathed. Prices were not affected by the drop in sales. 

 

Sales figures released by the association for March showed that 7,409 homes changed hands last month, a decline of 24.6% over March 2017, while average property prices climbed 5.3% over the same period.

 

A news release from the association said that the average home sold for $726,930 last month. The BCREA is of the opinion that the reason for the climate of persistently high prices is the fact that there is a lack of properties available for sale, noting that the total of active listings has changed very little since March 2017, nudging a 12-year low across B.C.

 

Association chief economist Cameron Muir predicted that prices will continue to rise as long as the trend continues. He also criticized what he called the “burdensome” mortgage qualification rules that took effect in January, saying they have had the “predictable effect of swiftly curbing housing demand.”

 

“You simply cannot pull as much as 20% of the purchasing power away from conventional mortgage borrowers and not create a downturn in consumer demand,” Muir said, as quoted by The Canadian Press.

 

B.C. home sales in March tallied $5.39 billion, a 20.6% tumble compared with March 2017. Meanwhile, quarterly sales dollar volumes since January have slipped 1.7% year-over-year to $13.9 billion.

 

Residential sales also fell 9.4% during the first three months of this year. On the other hand, the average price of a home increased 8.5% to just over $732,000 during the same period.
 

Written by The Realty Paper


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