BC Homes Sales Dip After Strong December BCREA
In a news release (highlights added) with this title the BC Real Estate Association (BCREA) reported that home sales in January were 10% lower than December on a seasonally adjusted basis.
If you conclude, as I did, that this headline is suggesting the markets have slowed, that is not the case. The real story here is that December was a very strong month as buyers rushed in to beat the new mortgage stress test that took effect January 1, 2018. The release notes that January sales were up 18.3% over January of 2017 with a price increase of 16.2% province wide. With the exception of Victoria, all markets saw a reduction in active listings (inventory) compared to last year.
For the Vancouver Island Real Estate Board area (VIREB), some specific numbers include (highlighted in the release) comparing January 2018 to 2017:
- Average price was up 10.7%
- Active listings were down 18.3%
- Units sold in January was up 25.8%
- Please not these stats are based on all types of property and not just single family homes I usually report on.
As reported in my Market Update in January, December sales were up 34.6% for the VIREB area with Nanaimo leading the way with a 69% increase.