Paul Luke
Province
Consumer jitters are putting a chill into the B.C. housing market.
The average home price across the province slumped 7.4 per cent between last month and September 2007, the B.C. Real Estate Association said yesterday.
Average home prices in Greater Vancouver tumbled eight per cent to $535,598 last month from $582,354 a year earlier, the association said.
And sales volume on the Multiple Listing Service in Greater Vancouver plunged 47.8 per cent to $867.7 million between last month and September 2007.
Association chief economist Cameron Muir said consumer confidence in B.C. is at a five-year low, prompting people to put off making major purchases such as houses and cars.
The storms sweeping global financial markets are not exactly helping to boost that confidence, Muir said.
“Weaker consumer demand and a large number of homes for sale are having an impact on home prices in the province,” Muir said.
“Despite relatively strong fundamentals, consumer confidence is low.” Affordability, on the other hand, is improving.
“The carrying cost of the average home in the province is now lower than at any time since the end of 2006,” Muir said. Prices will continue to move downward until supply and demand come into balance, Muir predicted.
The number of active MLS residential listings in Greater Vancouver soared 72.6 per cent on a year-over-year basis. Across B.C. they jumped 63.4 per cent.
“Looking at the number of listings out there, it’s unlikely that we’re going to see home prices edge up again until at least the spring of 2009,” Muir said.
On a year-to-date basis, the average home price for Greater Vancouver — and for the province as a whole — climbed 5.7 per cent.
© The Vancouver Province 2008