Housing prices in B.C. remained high despite a drop in residential real estate sales in September, according to the latest data from the B.C. Real Estate Association (BCREA).
The average housing price in B.C. was 4.1% higher in September 2010 – rising to $493,846 from $474,169 – due primarily to an 11.3% increase in housing prices in Greater Vancouver.
Other markets with price increases included Kamloops (+5.8%), Okanagan Mainline (+3.9%), Vancouver Island (+3.3%) and the Fraser Valley (+1.9%).
The remaining markets, however, reported declines in the average price, with the greatest declines in the Northern Lights district (-21.4%), Powell River (-21%), and the South Okanagan (-9%).
Real estate activity continued to slow in September with 11 of 12 real estate boards reporting double digit declines in the number of units sold.
The greatest decline was in Victoria, with a 47.9% decline to 379 units sold in September from 728 a year ago. Vancouver Island, Okanagan Mainline, Greater Vancouver, the Fraser Valley and the South Okanagan all saw declines of greater than 33%.
Despite the declines, B.C.’s real estate market remains in buyer territory with a large number of homes on the market.
Cameron Muir, chief economist for the BCREA noted the market has 8.9 months worth of supply on the market, down from 11.1 in June.
“A balanced market typically exhibits five to seven months of supply," he said. “The current downward pressure on mortgage rates is expected to bolster housing demand this fall as consumers take advantage of a second opportunity to secure near record low interest rates.”