BCREA reports “Affordability Drives Home Sales Higher”

Our real estate market is off and running again contrary to the scare stories from south of the border and other parts of the world.  Why?  There is pent up demand, still, for our product. The prices which were becoming over-inflated have corrected, and interest rates have lowered yet again to near record lows – making home buying the cheapest it has been in three years!

Real estate will always be the number one investment in BC.  If you’re thinking of investing be sure to give the Downtown Suites Team a call to assist in your acquisition and management.  Please ask for me personally and I will be happy to discuss your objectives with you.

The BCREA released this info from Chief Economist Cameron Muir yesterday:

British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 35 per cent to $2.3 billion in March, compared to the same month last year. Residential unit sales declined 25 per cent to 5,464 units during the same period. The average MLS® residential price in the province was $424,122 in March, down 12 per cent from March 2008.

“While fewer MLS® residential sales were recorded last month compared to March 2008, home sales actually climbed 24 per cent from February to March on a seasonally adjusted basis, the second consecutive month of gains,” said Cameron Muir, BCREA Chief Economist.

A significant increase in affordability helped fuel housing demand last month. “Reduced mortgage interest rates have effectively doubled the impact of lower home prices on affordability,” added Muir. While the average sales price in BC declined 12 per cent from a year ago, the monthly payment on the average priced home was 24 per cent lower. “Housing is now more affordable than at any time in the last three years,” noted Muir.