Home prices continue to climb in B.C., despite dramatic sales decline: BCREA - InfoNews

Current Conditions

3.0°C

Home prices continue to climb in B.C., despite dramatic sales decline: BCREA

A lack of housing supply is being partially blamed for high prices, despite lower sales.
Image Credit: STAFF
April 12, 2018 - 1:00 PM

VANCOUVER - Home sales in British Columbia plummeted last month compared with March of last year, but the B.C. Real Estate Association says the decline was not reflected in prices.

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

A news release from the association says the average home sold for $726,930 last month and it blames persistently high prices on the lack of properties available for sale.

It says total active listings have changed very little since March of 2017, nudging a 12-year low across B.C.

Association chief economist Cameron Muir forecasts prices will continue to climb as long as the trend continues.

He is also critical of what he calls 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 per cent of the purchasing power away from conventional mortgage borrowers and not create a downturn in consumer demand," Muir says in the release.

B.C. home sales in March tallied $5.39 billion, a 20.6 per cent tumble compared with March 2017, while the association says sales dollar volumes since January slipped 1.7 per cent to $13.9 billion, compared with the first quarter of last year.

Residential sales also fell 9.4 per cent during the first three months of this year, while the association reports the average price of a home increased 8.5 per cent to just over $732,000 during the same period.

News from © The Canadian Press, 2018
The Canadian Press

  • Popular vernon News
  • Comments
  • Gourlay addresses Gatey family in court
    KAMLOOPS - The man who left the scene after killing a 16-year-old Kamloops girl with his Jeep addressed her family in court today. Jason Charles Gourlay stepped out of the prisoner's box
  • Washout closes Highway 33 east of Kelowna
    KELOWNA – A washout east of Kelowna has closed 6.5 kilometres of Highway 33 with no estimated time of opening. The B.C. Transportation Ministry says the highway is closed in both direc
  • $2 million investment proposed for Penticton amusement park
    PENTICTON - A major investment being proposed by the owners of Penticton’s LocoLanding Adventure Park needs the support of council in the form of a lease renewal on the city owned land it si
  • Ten years in jail for attempted hit in West Kelowna
    WEST KELOWNA – A Lower Mainland man who admits to shooting someone multiple times in West Kelowna two years ago has been sentenced for attempted murder with a restricted weapon. Police
  • Film crews arrive in North Okanagan to shoot scenes for new movie
    LUMBY - Various locations in and around Lumby are being used as the backdrop for a movie. The film Daughter of the Wolf  starring Gina Carano from Deadpool and Richard Dreyfuss of&nb
View Site in: Desktop | Mobile