BC Home Sales Jump 25.6% in June, Prices Rise 13.5%: BCREA

Wednesday, July 15th, 2015

Sales dollar volume across province rises nearly 43 per cent in second busiest June on record, says association

Joannah Connolly

Like the summer weather, the real estate market across the province was hot even for June, according to the latest figures released July 14 by the British Columbia Real Estate Association (BCREA).

A total of 11,294 residential unit sales across BC were recorded in June, up 25.6 per cent compared with the same month last year.

The average MLS resale price in the province rose to $631,962, a 13.5 per cent increase since last June.

This double rise pushed the province’s total sales dollar volume to $7.1 billion last month, a 42.6 per cent increase compared with the previous year.

“BC home sales posted the second strongest June on record,” said Brendon Ogmundson, BCREA economist. “A growing provincial economy and record low borrowing rates continue to push demand higher, particularly in the Lower Mainland.”

“While consumer demand is surging, the supply of homes for sale has not kept pace. The resulting imbalance of supply and demand has put upward pressure on prices in many areas of the province, most notably with respect to single detached homes.”

In the first half of 2015, BC residential unit sales climbed by 23.1 per cent to 51,559 units, while the average MLS resale price rose 11.2 per cent to $631,946.

UPDATE: Across Canada, home sales set a record for June, standing 11 per cent above June 2014 and 14 per cent above the 10-year national average for the month, according to Canadian Real Estate Association (CREA) figures released July 15.

The national average sale price rose 9.6 per cent on a year-over-year basis in June, but was again greatly skewed upwards by high price rises in Greater Vancouver and Greater Toronto. Excluding those markets, it increased by 3.1 per cent.

Two-storey detached homes again recorded the biggest year-over-year price increases (up 7.65 per cent), with more modest increases for bungalows (up 4.43 per cent), townhouse/row units (up 4 per cent) and condos(up 2.64 per cent).

The report added that year-over-year price growth varied among housing markets. Greater Vancouver (up 10.26 per cent) continued to post the country’s biggest year-over-year price increases. By comparison, Fraser Valley, Victoria and Vancouver Island prices all recorded year-over-year gains of about 4 per cent in June.

“Low interest rates are unquestionably helping boost consumer confidence and home sales activity this summer,” said CREA president Pauline Aunger. “But low interest rates are benefiting sales in some areas more than others. All real estate is local, with trends affected by a combination of local and national factors.”

© 2015 Real Estate Weekly

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