Home sales down, prices to remain flat in Metro Vancouver – #realestate

Home sales down, prices to remain flat in Metro Vancouver

Victoria, Metro Vancouver record sharpest sales declines

B.C. sales declined 3.9 per cent  to 7,950 units in May compared to the same month in 2009.

B.C. sales declined 3.9 per cent to 7,950 units in May compared to the same month in 2009.

Residential home sales are down substantially in May from the same month a year ago, with Victoria and Metro Vancouver showing the sharpest drop, according to a survey released Monday by the B.C. Real Estate Association (BCREA).

Despite that, Victoria and Metro Vancouver have also seen some of the highest price increases over the 12-month period, although that trend is not expected to last.

“We’ve seen a moderation in demand since the beginning of the year,” BCREA chief economist Cameron Muir said in an interview. “Home sales in the fourth quarter [of 2009] were trending on record levels and that wasn’t sustainable because a lot of the demand was pent up during the recession.

“[Metro Vancouver, Victoria and the Fraser Valley] experienced the sharpest rebound last year. As a result we’ve seen moderation in sales, more so in those markets.

“Sales have moderated, inventory has risen [and] there are tighter credit conditions. Now, conditions are tilting toward the buyer and my expectation is that prices will remain flat for the remainder of the year.”

Muir also said there were 54,362 listings in May, up 26 per cent from January on a seasonally adjusted basis. “Moderating market conditions in Vancouver, the Fraser Valley and Victoria are reducing the number of multiple offers as a greater selection of homes for sale lessons competition amongst home buyers.”

According to the survey, B.C. sales declined 3.9 per cent to 7,950 units in May compared to the same month in 2009. On a seasonally adjusted basis, sales declined 11 per cent in May from April 2010, while the average price climbed seven per cent to $498,294 in May compared to the same month a year earlier.

Transactions dropped 10.3 per cent in Metro Vancouver from May 2009’s 3,569 to this May’s 3,202. Victoria saw sales drop 19.6 per cent over the same period from 836 to 672. In the Fraser Valley, sales dropped 0.8 per cent to 1,403 from 1,415.

The sharpest sales increases were in Northern Lights, or northeastern B.C. (up 90.9 per cent, from 22 to 42), B.C. Northern, or north and central B.C. (up 28.7 per cent from 349 to 449), while the Okanagan Mainline, or northern Okanagan dropped 2.5 per cent, from 558 to 554.

However, the average price rose 13.4 per cent from May 2009 to May 2010 in Metro Vancouver to $662,000 — the highest percentage increase in B.C., except for Northern Light’s 21.9 per cent ($192,000).

Victoria prices rose 8.9 per cent to $525,000, while the Fraser Valley’s prices rose an average of 9.1 per cent to $458,000.

Tsur Somerville, director, centre for urban economics and real estate, Sauder School of Business, the University of B.C., said in an interview that Vancouver and Victoria’s numbers are different from the rest of B.C. because the economic downturn impacted the rest of B.C. more.

“The immediate recovery was stronger in Greater Vancouver and Victoria. [They] had more room to step back.”

The survey also concluded that, year-to-date, B.C. residential sales dollar volume increased 50 per cent to $17.5 billion, compared to the same period last year. Residential sales rose 31 per cent to 34,619 year-to-date, while the average price climbed 14 per cent to $505,468 over the same period.

The BCREA said in another recent survey that it expects sales to rise next year by about four per cent.

A separate survey by the Canadian Real Estate Association (CREA) recently forecast that prices would rise 2.3 per cent this year across the province before slipping back by 3.5 per cent in 2011.







Source: http://www.vancouversun.com/business/Home+sales+down+prices+remain+flat+Metro+Vancouver/3153727/story.html#ixzz0qvakYU2V

Posted via web from Toronto Real Estate News, Blog

About Tariq Sultan
Dear Readers, I am a dedicated Toronto, Ontario based real estate professional who has been successfully meeting and exceeding the needs of his clients for past several years. I am actively involved in the insurance, financing, and mortgage industry. Real estate is not only my career – it is my passion. I strive to continuously provide my clients with exceptional service to ensure they are fully satisfied when it comes to their real estate needs. For any real estate related inquires contact me today, I will be happy to assist you. Best wishes, Tariq Sultan

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