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Fewer Sales & Larger Inventory Cool the Housing Market

Blog by Shaun Kimmins | July 16th, 2008

For the complete news release, including detailed statistics, follow this link: www.bcrea.bc.ca/news_room/2008-06.pdf.

For immediate release

Fewer Sales and Large Inventory Cool Housing Market

Vancouver, BC – July 16, 2008. British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 34 per cent to $3.31 billion in June, compared to June 2007. Residential unit sales fell 36 per cent to 7,133 units during the same period. The average MLS® residential price in the province was $463,458, up 4 per cent from June 2007.  

“Weaker consumer confidence and eroded affordability are slowing home sales in the province,” said Cameron Muir, BCREA Chief Economist.

Seasonally adjusted MLS® residential unit sales in June were near 2002 levels. During the first half of the year, BC MLS® residential sales were down 22 per cent to 42,907 units, when compared to the same period last year. The average residential price rose 9.6 per cent to $473,536 over the same period.

“The combination of a larger inventory of homes for sale and fewer home sales have tilted most BC markets in favour of homebuyers,” added Muir. “This means little upward pressure on home prices in many markets.” Victoria was in balanced conditions, while Northern Lights remained a sellers’ market in June. “Despite a dip in home sales, inventories could soon edge lower as home sellers adjust their asking prices to reflect market conditions.”