Home prices rise steadily

published by Asianpost on Thu, 11/29/2007 - 17:15

By Mata Press Service

The British Columbia Real Estate Association (BCREA) reported that residential sales volume on the Multiple Listing Service (MLS) in BC climbed 23.5 percent to $3.40 billion in October, year on year.

BCREA Chief Economist Cameron Muir said that residential unit sales increased 12.8 per cent to 7,358 units during the same period. The average MLS residential price hit $462,912, up 9.5 per cent from October 2006.

“While home sales continue at a brisk pace, prices in Vancouver and Victoria are climbing at a more moderate rate,” says Muir. “Compared to October 2006, the average sales price increased 7.8 per cent in both markets.”

Fraser Valley and Chilliwack prices climbed 6.2 and 6.3 per cent, respectively, during the same period. “Eroding affordability is providing less upward pressure on home prices in both Victoria and the Lower Mainland, as many first-time buyers no longer have the financial wherewithal to bid up prices,” added Muir.

In contrast to the South Coast’s major urban areas, home prices in the interior and northern markets continue a rapid ascent.

“The Okanagan, Kamloops and Kootenay markets are benefiting from strong demand from retiree, investor and recreation buyers,” noted Muir. “Abundant natural amenities and relatively low prices are drawing considerable attention from empty nesters around the province and across the country.”

“Housing markets in the north that are receiving new investment in resource extraction and transportation are performing well,” added Muir. “However, sluggish US demand for softwood lumber is impacting housing demand in many communities.”

The average sales price of a home in the BC Northern Real Estate Board area rose 11.3 per cent last month compared to October 2006. In the Northern Lights Real Estate Board area, the average home sales price climbed 18.5 per cent during the same period.

For more info contact: Cameron Muir direct: 604.742.2780 Mobile: 778.229.1884 or email: [email protected]