June 2016 Archive

The BCREA has reported that residential unit sales in May have increased to 13,458 units sold, which is an increase from Aprils 12,969 units sold, and also a growth of 32.2% since the same month last year.

The total dollar value of sales in May was $9.72 billion in May which is up 51.5% compared to the previous year.

The full report is below:

Record Home Sales Creates Wave of New Home Construction

Vancouver, BC – June 15, 2016. The British Columbia Real Estate Association (BCREA) reports that a record 13,458 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in May, up 32.3 per cent from the same month last year. Home sales last month exceeded April’s record of 12,969 units. Total sales dollar volume was $9.72 billion in May, up 51.1 per cent compared to the previous year. The average MLS® residential price in the province was up 14.2 per cent year-over-year, to $722,146.

“Record housing demand and dwindling inventories are continuing to push home prices higher in most BC regions,” said Cameron Muir, BCREA Chief Economist. “Total active residential listings across the province are nearly 30 per cent lower than twelve months ago.“

“New home construction activity is at a near record pace in the province,” added Muir. In the Metro Vancouver market, a record number of homes are now under construction. “Once the current crop of homes are ready for occupancy there will likely be more selection for home buyers and less upward pressure on home prices."

Year-to-date, BC residential sales dollar volume increased 62 per cent to $41 billion, when compared with the same period in 2015. Residential unit sales climbed by 35.2 per cent to 54,455 units, while the average MLS® residential price was up 19 per cent to $752,105.

Canadian housing starts declined by 1.5% in May, with the 6 month trend in Canadian housing also down, however in-line with growth in Canadian households.

BC housing starts cooled off from the near record-setting pace from the first five months of the year with a 23% decline from April's pace.

The full report is below:

Canadian housing starts declined 1.5 per cent in May to 188,570 units at a seasonally adjusted annual rate (SAAR). The six-month trend in Canadian housing starts of 191,000 was also down slightly and remains roughly in-line with growth in Canadian households.

Housing starts in BC cooled off of the near record-setting pace from the first five months of the year, recording 35,312 units at a seasonally adjusted annual rate, a 23 per cent decline from April's torrid pace of 45,000 units.New home construction was driven higher by growth in apartments and other multi-family units, which were up 34 per cent on a year-over-year basis while single-detached starts were 32 per cent higher compared to last May.

Looking at census metropolitan areas (CMA) in BC, total starts in the Vancouver CMA were up 36 per cent year-over-year in May due to broad strength in both multiple and single units. New home construction in the City of Vancouver, Surrey and Langley was particularly strong last month. In the Victoria CMA, housing starts of both single and multiple units more than doubled year-over-year with 224 total units breaking ground. New home construction in the Kelowna CMA surged 196 per cent, compared to one year ago, largely as a result of large condo projects getting underway. Housing starts in the Abbotsford-Mission CMA were also up sharply, rising 179 per cent year-over-year in May.

MLS Listings sales rose 12.3% to a continued record of 115,2000 units, which has surpassed the previous record of 106,310 units in 2005, while housing demand is expected to pull back slightly to 105,600 in 2017. There are strong economic fundamentals that are expected to produce above average consumer demand throughotu 2017.

The average residential price in the province is predicted to increase 20.4% to $766,600 this year and a further 3.4% to $792,800 in 2017. New home construction starts are expected to increase 20% to 37,800 units this year, and then decline down to 34,200