The real estate market in British Columbia is still hot.
The British Columbia Real Estate Association says the sales dollar value of residential real estate in the province has hit $41 billion this year; that’s a 62 per cent increase over the first five months of 2015. The average price for a home listed on the MLS has gone up 19 per cent to $752,105.
In Greater Vancouver, the average sale price for a residence in May was $1,055,495, a 16.5 per cent increase over a year ago. The ratio of sales to active listings during the month was 58.2 per cent; prices usually don’t start feeling downward pressure until the ratio falls below 12 per cent.
First hand experience with the hot real estate market
We’re seeing the frenzy first hand.
Already we’ve surpassed our sales pace for last year. The average time it takes to sell a home after it’s listed is eight days! It’s not uncommon for a property to sell above the asking price. Many homes are attracting multiple offers; just in the past week we saw 12 offers on one property and 13 on another!
Sometimes it’s hard to catch our breath, we’re so busy.
Lack of inventory in a hot real estate market
Part of the reason for this real estate frenzy is the lack of available inventory. There’s 30 per cent fewer active residential listings than a year ago, said Cameron Muir, the BCREA’s chief economist.
“Record housing demand and dwindling inventories are continuing to push home prices higher in most BC regions.”
That imbalance between demand and supply has sparked new home construction, which is near a record pace in the province, said Muir.
“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.”
But it’s going to take some time for those new homes to be completed. In the meantime, we’re going to take our breaks whenever and wherever we can!
Click here for the full statistical breakdown