Wednesday June 9th, 2010 - British Columbia Prices Are Up, But Sales Starting to Slow

Housing prices are going up in British Columbia and are expected to top the 2009 numbers. But the higher interest rates and new mortgage qualifying rules may have already started to slow real estate market sales.

The average price of a home is expected to reach $494,600, a six percent increase by year end. Much of that increase has already happened and industry analysts believe prices will gradually stabilize. The figure represents all home types sold through the multiple listing service (MLS). Next year a one percent increase is expected, bringing prices to an average of $499,700 per unit.

Prices received their biggest boost by heavy activity in Victoria, Vancouver and the Fraser Valley. Over the last three quarters, these three parts of the province have had hot, active real estate climates. Even in these stellar markets things have started to slow. In the Greater Victoria area, May saw 695 sales as compared to 756 in April of this year. Inventory on the MLS increased to 4,500 units, which is 19 percent higher than May of 2009. The average price of a home in the capitol region rose to $646,483 in May, compared to $624,149 in April.

Province wide, sales are expected to decrease three percent this year compared to 2009, 82,350 to 85,028 respectively. In 2011 it is expected that 85,028 homes will change hands.