BC Housing Sales Decline in February

British Columbia home sales fell in February for the second consecutive month. Is it a trend? It is hard to say this early into the year: however, there is a general slow down in the market.

Does this mean price reduction? I do not think so. It means that houses are taking a little longer to sell, more possibilities for buyers to chose from unlike a few years ago when there were more buyers then sellers. We are heading toward a more balance market, and I feel a more stable market. Not everything goes up for ever. You may be asking yourself if this mean that we will see a sell-off like the US. This I do not see as the fundamentals in Canada are sound and the economy, particularly in BC is very strong. This in conjunction with lowering interest rates in Canada will help to maintain a healthy market for 2008.

For more information on the recent sales in BC please read the article below from the British Columbia Real Estate Association.

Vancouver, BC – March 17, 2008. British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC rose 4.5 per cent to $3.26 billion in February, compared to the same month in 2007. Residential unit sales dipped 9.8 per cent to 6,822 units during the same period. The average MLS® residential price in the province reached $478,172 in January, up 15.8 per cent from February 2007.

“BC home sales fell for the second consecutive month, marking the slowest start to a year since 2003,” said Cameron Muir, BCREA Chief Economist. “While it’s still too early to call a trend, fewer home sales and an increase in active listings may be pulling the BC housing market toward balanced conditions.”

“Strong employment and wage gains over the last year continue to underpin housing demand,” said Muir. The number of unit sales recorded in the month was 13 per cent above the February average from 1998 to 2007. “However, continued erosion in housing affordability may be taking a toll on the ability-to-pay for some buyers.”

Additionally, a weak US economy and lower demand for BC lumber is negatively impacting BC’s forestry industries and local resource communities, while current economic volatility may also be impacting the confidence for some would-be buyers.

For more information, please contact:
Cameron MuirChief EconomistDirect: 604.742.2780Mobile: 778.229.1884Email: cmuir@bcrea.bc.ca

For more information on the market in Victoria feel free to contact us or long onto our website and click on the Victoria Real Estate Market Update.

Cheers
Bill

Bill Ethier B.Sc - REALTOR®Properties in Victoria Professionals- Royal LePage Coast Capital Realty

Bill has been a REALTOR® in Victoria since 2006. Originally from the Vancouver area, Bill moved to Victoria to attend the University of Victoria where he received his Bachelor of Science. Not only does Bill have a wealth of real estate knowledge he is also an active member of the community. He is a member of Triple Shot Cycling Club, Island Road Racers and is the Race Director for the Sooke River 10K.