Tighter Regulation Trims Home Sales – Greater Vancouver Real Estate Update October 2012
TheÂ British Columbia Real Estate Association (BCREA) reports that the dollar volume of homes sold through the Multiple Listing ServiceÂ® (MLSÂ®) in BC declined 28.5 per cent to $2.2 billion in September compared to the same month last year. A total of 4,539 MLSÂ® residential unit sales were recorded over the same period, down 24.3 per cent from September 2011. The average MLSÂ® residential price was $494,213, down 5.6 per cent from a year ago.
“Stricter high-ratio mortgage regulation further exacerbated a moderating trend in consumer demand,â€ said Cameron Muir, BCREA Chief Economist. â€œReducing the maximum amortization from 30 to 25 years had the equivalent impact to affordability as a 100 basis point increase in mortgage interest rates.”
â€œAn expanding population, strong full-time employment growth and persistent low mortgage interest rates are expected to bolster housing demand in the months ahead,â€ added Muir.
Year-to-date, BC residential sales dollar volume declined 18.5 per cent to $28.4 billion, compared to the same period last year. Residential unit sales declined 10.6 per cent to 54,670 units, while the average MLSÂ® residential price was 8.9 per cent lower at $519,289.
If you have any real estate questions or if you are thinking of buying or selling your home, please contactÂ James Louie Chung, Metro Vancouver REALTORÂ® â€” Real Estate AgentÂ atÂ [email protected]Â or call / text ( 6 0 4 ) 7 1 9 â€” 6 3 2 8 today!