B.C.’s white hot real estate market led the way across Canada in May as West Coast home sales reached levels not seen prior to the 2008 financial crisis.
Total sales of 10,174 residential units helped the B.C. market soar 16.6% compared with the same month a year ago, according to data released Monday (June 15) by the B.C. Real Estate Association (BCREA).
Last month’s huge push in the real estate market brought home sales to an eight-year high on the West Coast, BCREA chief economist Cameron Muir said in a statement.
Metro Vancouver’s 9.4% sales gain was the largest across Canada, followed closely by Greater Toronto’s 8.9% gain.
Overall, home sales rose 3.1% across the nation last month.
"Canadian home sales and prices remain resilient, led by Vancouver and Toronto, but many markets outside those hard-hit by the slide in oil prices are in fine or improving shape as well," BMO senior economist Robert Kavcic wrote in a note to investors, adding favourable weather this year in B.C. has “flattered” year-over-year gains.
The Fraser Valley (+4.1%), Vancouver Island (+4.2%) and Victoria (+4.4%) were also among the strongest markets in Canada throughout May.
The average B.C. residential price on Multiple Listing Services (MLS) jumped 11.8% to $632,182 compared with a year prior.
In Metro Vancouver, the average was $684,400.
Leslie Preston, an economist at TD Economics, wrote in an investors note this year’s drop in mortgage interest rates has helped stimulate the housing market.
“Another factor that may have played a role in May sales was an increase in mortgage insurance premiums for buyers with less than a 10% down payment, effective June 1. So sales in May might have in part reflected a rush to buy ahead of the higher premiums.”
She added Vancouver and Toronto should cool off slightly on higher interest rates but prices should still remain strong based on demand.
