A robust provincial economy and bolstered consumer confidence fueled home sales this spring, with the market showing no signs of slowing as we headed into summer said a release from the Vancouver Island Real Estate Board.
In June 2015, 636 single-family homes sold on the MLS® system compared to 527 in May, an increase of 20 per cent. Year-over-year, sales rose 36 per cent over the 469 single-family homes sold in June, 2014. Inventory levels declined on the Island, with active listings down approximately 13 percent from the prevous year.
BC Real Estate Association Chief Economist Cameron Muir reported that British Columbia’s economy is leading Canada, with 2.4 per cent growth expected this year. Low interest rates, confident consumers, and limited inventory in many areas were driving B.C.’s strong housing market.
“With no interest-rate hike on the horizon, we’re unlikely to see any cooling in the next couple of quarters,” said Muir. “Consumers are out buying in a big way, and there is lots of competition for available listings.”
VIREB President Jason Finlayson confirmed that although the summer months are traditionally quieter, activity on the Island showed no signs of slowing. Even with declining inventory levels, however, the benchmark price was up just a little over four per cent from last year.
“Despite healthy sales and declining inventory throughout our area, our market is still balanced,” said Finlayson. “We see occasional multiple offers, but homes still need to be competitively priced to sell. However, if inventory levels continue dropping, we could begin to see sellers’ markets in some areas.”