Rising Gas & Food Prices Sideline Home Buyers
British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 27 per cent to $3.85 billion in May, compared to May 2007. Residential unit sales fell 31 per cent to 8,101 units during the same period. The average MLS® residential price in the province reached $475,656, up 6 per cent from May 2007.
“Rising fuel and food prices are impacting the housing market, as many potential homebuyers take a wait and see approach out of concern for their household budgets,” said Cameron Muir, BCREA Chief Economist.
While BC has one of the best performing economies in the country, slower economic growth and a spate of bad news stemming from the US housing recession is also eroding consumer confidence, causing some consumers to delay major purchases.
“Despite strong demographic fundamentals, amenity markets in the province are bearing the brunt of reduced demand as second home purchases by recreation and investor buyers are more easily delayed,” added Muir. “However, higher inventory levels may soon edge lower as homes priced in relation to the accelerating conditions of the past are either pulled off the market or re-priced and sold according to today’s market realities."
- from BCREA