Good news on all fronts in housing


Wednesday, January 13th, 2010

Province

Average house prices in B.C. rose two per cent in 2009 as the province’s housing market began with a whimper and went out with a bang.

House sales in the province soared 132 per cent to 5,703 units in December from the same month a year earlier, the B.C. Real Estate Association said Tuesday.

Last month saw more homes change hands in any December except 1989, when 6,014 units were sold.

“The year began with home sales trending at a 25-year low and ended at a 20-year high,” association chief economist Cameron Muir said.

“Low mortgage interest rates, pent-up demand and improving economic conditions were key drivers of consumer demand.”

Last year saw 85,028 residential units sold over the multiple listing service across the province, up 23 per cent from 2008, the association said. The average MLS house price rose two per cent to $465,725 last year.

“Considerable momentum in the housing market is expected to carry through the first quarter of 2010, before home sales begin to moderate as a result of eroding afford-ability and less pent-up demand,” Muir said.

Separately, Statistics Canada reported Tuesday that new-home prices across the country rose a stronger-than-expected 0.4-percent in November, marking a fifth straight monthly gain. Most economists had forecast a 0.3-per-cent month-over-month advance.

Vancouver‘s new-home prices rose 0.3 per cent month-over-month but were down 2.8 per cent from the same month last year. Victoria’s month-over-month prices were unchanged but fell 8.4 per cent from a year earlier.

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