Market Update

With May flowers in full bloom, the Central Okanagan Real estate market continues to see strong sales activities, with increases in home listings & a leveling average price up marginally this month to $455,996. The number of residential home listings is up 32.84 % over this time last year with 453 homes available as sales rose by 10.83 % giving buyers slightly more choices of homes over the same period last year. The B.C. Real Estate Association (BCREA) released its first semi-annual Housing Forecast report today. The report contains forecasts & analysis of the B.C. economy & housing markets, including detailed forecasts by home type of the province’s twelve real estate board areas. “Market forces have realigned,” said Cameron Muir, BCREA Chief Economist. “Some potential home buyers are now finding themselves at the wrong end of a price-led affordability squeeze, & home sales are forecast to edge down as a result.” MLS® residential sales are forecasted to dip 3 % to 93,600 units in the province in 2007, & a further 4 % to 89,500 units in 2008. The ten-year average is 77,811 units. “A more balanced market is emerging in the aftermath of less frenetic buying activity & an increase in residential listings,” added Muir. The supply of active listings in the province increased 27 % to 32,879 units in March compared to the same month last year. “More balance between supply & demand will mean less upward pressure on home prices,” said Muir. The average MLS® residential price in the province climbed 18 % to $390,963 in 2006. This year, the average MLS® residential price is forecast increase a more modest 8 % to $422,000, & a further 7 % to $450,000 in 2008. “Strong economic fundamentals will underpin housing demand through 2008,” noted Muir. “Robust labour demand is forecasted to keep job growth high & unemployment low. In addition, wages & salaries, & personal disposable income are forecast to rise well above the inflation rate.” BC housing starts are forecasted to decline 7 % to 33,900 units in this year and a further 6 % to 32,000 units in 2008. While new home inventories remain at low levels, capacity constraints are inhibiting the ability of many BC home builders to increase production.

ACTIVE LISTINGS

Res.

Mobiles

Strata

Lots

SUMMARY OF RESIDENTIAL SALES

2007

2006

124

64

32

23

A FEW MORE REAL ESTATE STATS!

SALES BY TYPE
Year to Date

 2007 

2006

28

Housing starts to moderate slightly in April

The seasonally adjusted annual rate(1) of housing starts was 211,900 units in April, down from 214,000 units in March, according to CMHC. "Housing starts in April remain strong & are in line with our new home construction forecast for 2007," said Bob Dugan, Chief Economist at CMHC's Market Analysis Centre. "The slight decrease in housing starts is the result of declines in single-detached & rural area starts. Multiple starts continued to move upwards in April." April's seasonally adjusted annual rate of urban starts was 179,000 units, up 0.6 % from March. The urban multiple component rose 2.3 % to 94,700 units in April, while single starts decreased 1.2 % to 84,300 units. Seasonally adjusted urban starts decreased in April in all regions except Ontario, where starts were up 9.4 %. Urban starts were down 4.0 % in Quebec, 3.2 % in British Columbia, 3.1 per cent in the Atlantic, & 1.8 per cent in the Prairies. Urban single starts decreased in all regions except Ontario & the Prairies, while urban multiple starts were down in all regions except Ontario & the Atlantic. Rural starts were estimated at a seasonally adjusted annual rate of 32,900 units in April.  (CREA 08/05/2007)