Housing Supply Not Keeping Pace with Demand in Most BC Regions
The British Columbia Real Estate Association (BCREA) reports that a total of 12,402 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in May, down 7.9% from the same period last year. Total sales dollar volume was $9.33 billion, down 4.0% from May 2017. The average MLS® residential price in the province was $752,536, a 4.2% increase from the same period last year.
“Market conditions have tightened considerably this spring as an upturn in consumer demand has not been accompanied by a rise in homes listed for sale," said Cameron Muir, BCREA Chief Economist. "The supply of homes for sale in the province has fallen 50% over the past five years."
"The entire southern portion of the province is experiencing a shortage of housing supply, which makes continuing upward pressure on home prices inevitable, at least in the near term," added Muir. Total active listings in the province were down 11.1% to 28,404 units from May 2016. The ratio of home sales to active listings was well over 20% in nine of the province's 11 real estate boards, and over 50% in Vancouver, the Fraser Valley, Chilliwack and Victoria.
Year-to-date, BC residential sales dollar volume was down 25.2% to $30.6 billion, when compared with the same period in 2016. Residential unit sales declined 20.1% to 43,158 units, while the average MLSÂ® residential price was down 5.7% to $709,541.
For the complete news release, including detailed statistics, click here.