Following suit with previous months, housing demand is still continuing to outpace supply. In May 2017, MLS® recorded a total of 12,402 residential unit sales and an average MLS® residential price in BC of $752,536 which is a 7.9% decrease and 4.2% increase, respectively, from the same period last year. Total sales dollar volume amounted to $9.33 Billion which is a 4% decrease from May 2016. 

“Market conditions have tightened considerably this spring as an upturn in consumer demand has not been accompanied by a rise in homes listed for sale,” said Cameron Muir, BCREA Chief Economist. “The supply of homes for sale in the province has fallen 50 per cent over the past five years.

There is a shortage of housing supply in the entire southern portion which consequently results in upward pressure on home prices. Total active listings has decreased by 11.1% in comparison to May 2016 and totals 28,404 units. The ratio of home sales to active listings was over 20% in 9 of the province's 11 real estate boards and over 50% in Vancouver, the Fraser Valley, Chilliwack and Victoria.

Below you will find a comparative chart showing May 2017 and May 2016 figures for average residential price, active listings, sales-to-active listings, dollar volume and residential units sold in BC. (Click to enlarge photo).

For all your real estate needs, contact Amalia Liapis at 604-618-7000 or alternatively at amalia@wesellvancouver.ca.

The British Columbia Real Estate Association (BCREA) saw a 23.9% decrease in residential unit sales in comparison from April 2016 to April 2017 (9,865 units recorded by MLS®). Comparing to the same period last year, total sales dollar volume was $7.19 Billion which is a 25.4% decrease and the average MLS® residential price in BC has seen a 2% bringing it down to $728,955.

“BC home sales are on an upward trend this spring, led by a sharp increase in consumer demand in the Lower Mainland,” said Cameron Muir, BCREA Chief Economist.  

Home inventories are at a 20-year low. Currently, the seasonally adjusted annual rate (SAAR) of home sales has seen a significant increase in relation to the five-year SAAR for April. (89,000 to 106,000 units). SAAR is a rate adjustment that attempts to remove seasonal variations in the data.

There was a 17% decrease in the supply of homes available for sale in comparison to April 2016 figures. Adjusted for seasonal variations, active residential listings have seen a 50% decline since 2012 and are now at their lowest level in over 20 years. Due to the imbalance between supply and demand, demand is driving home prices higher in most regions.

Year-to-date, BC residential sales dollar volume was down 31.8 per cent to $21.3 billion, when compared with the same period in 2016. Residential unit sales declined 25.0 per cent to 30,757 units, while the average MLS® residential price was down 9.2 per cent to $692,220.

Source: British Columbia Real Estate Association (BCREA)

It's no surprise that the ongoing trend of housing demand outpacing supply has followed us into the month of May. Let's look back at April 2016 statistics to solidify our understanding of the housing market. 

There has been an increase of 30.3% residential unit sales when comparing April 2016 to April 2015 with a total of 12,969 units recorded. The total sales dollar volume was $9.64 Billion which is a 52.7% increase compared to the same period in time last year. Looking at the average MLS® residential price in BC of $743,640 shows a year-over-year increase of 17.2%. 

“Housing demand is exceptionally strong across the southern regions of the province,” said Cameron Muir, BCREA Chief Economist. “Consumers appear to be particularly active in the Vancouver Island, the Fraser Valley and the Thompson/Okanagan regions.” “Strong employment growth is helping underpin consumer confidence,” added Muir. 

Despite what appears to be a period of higher than normal unemployment, there has been an additional 78,000 workers employed in BC in the first quarter of 2016 which is a 3.5% increase in comparison to the same period last year. Looking at the year-to-date statistics, the BC residential sales dollar volume is sitting at $31.2 Billion (64.3% increase), unit sales total 28,028 units (36.2% increase) and the average MLS® residential price is currently $761,860 (20.6% increase). Take a look below for a regional breakdown of MLS comparative data and the changes from April 2015 to April 2016. 

Source: British Columbia Real Estate Association (BCREA)

For all your real estate needs, contact Amalia Liapis by e-mail at amalia@wesellvancouver.ca or alternatively by phone at 604-618-7000.

As we take a look at MLS® sales figures for February 2016, it is evident that there has been a substantial increase in residential unit sales in comparison to February 2015 numbers with a total increase of 44.7% (9,637 sales). There is a stark contrast in terms of total sales dollar volume from one year to the next with a total of $7.51 Billion which is a 76.4% increase. The average MLS® residential price in the province was up 21.9 per cent year-over-year, to $779,419.

"Housing demand is now at a break-neck pace," said Cameron Muir, BCREA Chief Economist. "Home sales last month were not only a record for the month of February, but on a seasonally adjusted basis, demand has never been stronger in the province."

"Downward pressure on active listings has created significant upward pressure on home prices in some regions, particularly in Vancouver and the Fraser Valley," added Muir. "While home builders have responded with a record pace of housing starts for BC last month, the supply isn't expected alleviate the imbalance in these markets in the near term."

Looking at year-to-date data, residential sales dollar volume for BC has increased 73.6% to $11.9 Billion in contrast to the same period in 2015 whereas unit sales increased 40.1% to 15,468 units. At the rate this is going, it is no wonder why the intense housing demand is causing a shortage of supply. For all your real estate needs, contact Amalia Liapis at amalia@wesellvancouver.ca or alternatively, at 604-618-7000.