The British Columbia Real Estate Association (BCREA) says sales were down almost eight per cent in May, compared to last year, but say the housing market is still red hot because supply can’t keep up with demand in most regions.
A little more than 12,000 residential units were recorded last May, which is down from the same time last year.
But chief economist Cameron Muir says most markets have a lack of supply, creating a strong sellers’ market.
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“New home construction activity has really not kept pace with overall demand in the market place, and while in a market such as Vancouver we see about 35,000 units under construction today, it’s going to take some time before those are ready to be occupied.”
He says that in the meantime, home prices are being bid higher.
“In Vancouver for example, the strongest markets right now, or at least by product type, are condominiums and townhouses, same as the Fraser Valley.”
Muir says townhomes in the Fraser Valley last month had a 99 per cent “sales to active listings ratio,” meaning that almost everything that’s listed is sold.
The average price of a home in B.C. is up 4.2 per cent more than $750,000 when comparing year-over-year.
With files from Michelle Morton
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