B.C. home sales fall 35 percent from spring market peak, but prices climb 17 percent over last year

The B.C. Real Estate Association says home sales continue to moderate.

In a new report, the BCREA noted that a total of 9,663 housing units were sold in July 2021.

“Provincial market activity slowed in July with both sales and listings declining on a seasonally adjusted basis,” chief economist Brendon Ogmundson stated in a media release Wednesday (August 11).

B.C. recorded its best monthly sales in March 2021, when 15,073 homes changed hands.

The March 2021 record beat the previous all-time high tally of 13,482 home sales in May 2016.

From the market peak of 15,073 sales in March 2021, sales fell over the following months with April at 13,683; May, 12,638; and June, 11,070.

Also, average prices peaked at $947,707 in March 2021, and fell on each consecutive following month.

In July 2021, the average price of a B.C. home dropped to $891,687.

A bright spot?

The BCREA reported that the average price in July 2021 marked a 17.1 percent increase from $761,772 recorded in July 2020.

As for sales, the 9,663 transactions in July 2021 represent a 35 percent from the peak in March 2021.

Moving forward, the supply of homes for sale could be a problem.

“While sales remain robust, listings activity continues to be a concern as inventories trend near record lows,” BCREA’s Ogmundson said in the media release.

Ogmundson noted that total active home listings were down 32.2 percent year-over-year in July, and “continued to fall on a monthly seasonally adjusted basis”.

There were 24,473 active listings in July 2021 compared to 36,108 in the same month last year.

The July 2021 sales-to-active-listings ratio was 39.5 percent, which means the market is solidly in seller’s territory.

References: Carlito Pablo on Twitter at @carlitopablo

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