B.C. Real Estate Association reports “pent-up demand may be starting to fade” but prices continue rising
The B.C. Real Estate Association reports that a total 11,051 homes sold across the province in October 2020.
Compared to October 2019, the sales represent a 43.8 percent increase.
When measured against deals in September 2020, which numbered 11,368, last month’s transactions show a decrease of around 2.8 percent.
In BCREA’s latest report Thursday (November 12), chief economist Brendon Ogmundson described what’s going on in the market.
“While pent-up demand may be starting to fade, record low interest rates and a recovering job market are supporting strong sales,” Ogmundson said.
Overall, the market “sustained its blistering pace of activity in October”, Ogmundson said.
Meanwhile, the average price of a B.C. homecontinues to rise.
In October 2020, the average price increased to$812,960.
Compared to the average price in September this year of $803,210, last month’s price show a 1.2 percent improvement.
Contrasted to the average price of $722,333 in October 2019, last month’s figure constitutes a 12.5 percent increase.
“A pandemic-driven shift in buyers’ preference for extra space is pushing average prices to record highs as larger value transactions account for a higher share of sales,” Ogmundson said.
The BCREA also reported that residential sales were up 16.3 percent to 76,140 units year-to-date, meaning transactions from January to October 2020.
Meanwhile, and also on a year-to-date basis, the average residential price increased 11.5 percent to $771,085.
On November 4, the BCREA released its fourth quarter housing forecast, which predicted that the average price of a home by the end of this year will rise 9.9 percent over 2019.