When reading the latest sales numbers for BC Real Estate, you could be forgiven for thinking that the ‘sky is falling’ with the BC Real Estate Market, and especially in Vancouver.
Reality, however, is that the market has returned to more normal levels. In Kelowna, for instance, I see these numbers more as a result of lack of inventory rather than lack of Buyers.
The British Columbia Real Estate Association (BCREA) reports that a total of 6,580 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in February, down 31.7 per cent from the same period last year. Total sales dollar volume was $4.53 billion, down 39.7 per cent from February 2016. The average MLS® residential price in the province was $688,117, an 11.7 per cent decrease from the same period last year.
Consumer demand has returned to a more typical level over the first two months of the year,” said Cameron Muir, BCREA Chief Economist. “While the home sales have declined nearly 32 per cent from the extraordinary performance of a year ago, last month’s activity reflected the average for the month February since the year 2000.”
The average MLS® residential price for the province was down nearly 12 per cent from a record $779,419 in February 2016. However, this change is largely the result of a decline in the proportion of provincial sales originating from the Vancouver region. Last month, 37 per cent of BC home sales occurred in the Real Estate Board of Greater Vancouver’s area, compared to 44 per cent in February 2016.
Year-to-date, BC residential sales dollar volume was down 38.5 per cent to $7.3 billion, when compared with the same period in 2016. Residential unit sales declined 28.5 per cent to 11,067 units, while the average MLS® residential price was down 14.1 per cent to $660,943.
Looking at the table of Residential Average Price , Year on Year, we can see prices have fallen in Greater Vancouver and the Fraser Valley, which may have an impact on the number of Buyers in Kelowna as the year progresses, but at the moment, average prices are showing higher up 13.1%.
Trish and Tanis
Tel 250 863 8989.