Royal LePage By the Numbers
BC Home Sales Decline 25% in 2018
Vancouver, BC – January 15, 2019.
The British Columbia Real Estate Association (BCREA) reports that a total of 78,345 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in 2018, a decline of 24.5 per cent from the 103,758 units sold in 2017. The annual average MLS® residential price in BC was $712,508, an increase of 0.4 per cent from $709,601 recorded the previous year. Total sales dollar volume was $55.8 billion, a 24.2 per cent decline from 2017.
“BC home sales fell below the 10-year average of 84,800 units in 2018,” said Cameron Muir, BCREA Chief Economist. “The sharp decline in affordability caused by the B20 mortgage stress test is largely to blame for decline in consumer demand last year.”
A total of 3,497 MLS® residential unit sales were recorded across the province in December, down 39.1 per cent from December 2017. The average MLS® residential price in BC was $695,647, a decline of 5.2 per cent from December 2017. Total sales dollar volume was $2.4 billion, a 42.3 per cent decline during the same period.
Total active residential listings were up 33.3 per cent to 27,615 units in December, the highest December inventory since 2014 when 33,995 active residential listings were recorded.
Happy New Year!
Happy New Year to all my valued friends & clients!
It’s amazing how quickly the years fly past, isn’t it? I hope you enjoyed the Christmas season with friends and family and have turned the page to a bright New Year. I thought I would just share with you a little about my year in 2018, and provide a bit of insight into what to expect in the Real Estate Market in 2019.
As most of you know, this past year has been a tough one for me. My husband of 39 years passed away suddenly and unexpectedly at the beginning of May. As you can imagine, it turned my whole world upside down. I am slowly but steadily coming to terms with that loss. I have been so blessed to have such an amazing network of family, friends, colleagues and clients rally around and support me. Life does carry on and I am a strong person.
On a positive note, there were some wonderful memories created this year as well. I was able to do some camping this summer in my new red Micro Minnie Winnebago travel trailer. It’s just perfect for me and I can handle towing it and setting it up myself. I took my two granddaughters camping in it for a week which was a lot of fun.
In September my daughters and I went to Nova Scotia and toured the province together for 10 days. That was such a wonderful time: lots of 
sites, beautiful landscapes and opportunity for us to heal. They both flew back and I stayed on a further week to attend the Royal LePage National Sales Conference in Halifax. It was, as always, a whirlwind of seminars, speakers and workshops as well as reconnecting with and meeting so many Royal LePage agents from across the country. I believe there were over 1000 in attendance and Royal LePage has such a great culture, it really does feel like family.
I took my first solo trip to Puerto Vallarta, Mexico in November. It was a very different experience, but I really enjoyed the downtime and alone time. The highlight of the trip for me was a cooking class that started with a trip to the market and ended with a fabulous 4 course dinner.
Of course, Christmas was very different this year. My family and I all gathered at my daughter’s house in Rutland. She has two young girls so it was good to have them to keep us all on track with the merriment. My Dad, stepmother, brother and my other daughter and her fiancé all joined us. There is nothing like family!
2018 saw a relatively strong start to the South Okanagan Real Estate market that really petered out and slowed over the course of the Fall. We ended the year down about 13% in the total number of residential sales. This slowing or correction has been felt across the country and is largely a result of rising interest rates, tougher mortgage qualifications and new taxes. The predictions for 2019 are pretty consistent in forecasting a continued slowing of the number of sales and even some decline in prices as we transition to more of a buyers market. There is expected to be a further two or more interest rate hikes over the course of the year which could further dampen sales.
In closing, I wish you and your families the very best of love, laughter and good health in 2019. Don’t be a stranger! I’d welcome a coffee, lunch or a glass of wine with you some time. My cell is 250-498-9867. I’d love to hear from you!
BC Housing Demand to Slow Through 2019
Vancouver, BC – The British Columbia Real Estate Association (BCREA) released its 2018 First Quarter Housing Forecast update on March 9
.
Multiple Listing Service® (MLS®) residential sales in the province are forecast to decline 8.6 per cent to 94,855 units in 2018, after decreasing 7.5 per cent in 2017. A record 112,209 unit sales were recorded in 2016. The ten-year average for MLS® residential sales in BC is 84,800 units. Strong employment growth, consumer confidence and favourable demographics have been highly supportive of housing demand over the last four years. However, slower economic growth, tougher mortgage qualification rules, and a rising interest rate environment are expected to slow the pace of housing demand over the next two years.
“Housing demand in the province is expected to moderate this year and in 2019,” said Cameron Muir, BCREA Chief Economist. “More stringent mortgage qualifications and rising interest rates will further erode affordability and household purchasing power.”
The 5-year qualifying rate is forecast to rise 35 basis points to 5.49 per cent by Q4 2018, and another 21 basis points to 5.70 per cent by Q4 2019. “With home prices already at an elevated level, BC households are more vulnerable to rising interest rates.”
The supply of homes for sale continues to trend at or near decade lows in most BC regions. However, this condition hasn’t gone unnoticed by home builders. There are over 60,000 homes now under construction in the province, well above the previous peak of 45,000 units recorded in 2008. In Metro Vancouver, over 42,000 units are in the pipeline, 56 per cent more than recorded in 2008. Slowing consumer demand combined with a surge in new home completions over the next several quarters will create more balance in the housing market and produce less upward pressure on home prices. The average MLS® residential price in the province is forecast to increase 6.0 per cent to $752,000 this year, and a further 4.0 per cent to $781,800 in 2019.
“Copyright British Columbia Real Estate Association. Reprinted with permission.”
Quick Review ~ 2017
Email Beth for a free consultation and update on the value of your home.
BCREA Housing Market Update (November 2017)
Information provided by the BC Real Estate Association