August sales numbers are down from July this year. Actually, August sales numbers are down 26.4% from August last year, but even these initially discouraging statistics are part of a seasonal trend that has BCREA executives predicting the speedy recovery of the B.C. real estate market.
The mortgage stress test earlier this year had certain parts of the Canadian market reeling, with Vancouver prices noticeably decreasing. Sales dropped, demand was down, and average prices were falling following the governmental instigated stress test in January.
Other areas such as Ontario and Alberta have suffered in similar ways, as has B.C., with lowered pricing and depressed sales volumes. However, despite the downturn, recent trends in those areas and statistics from the past three months in BC show that comparative improvement has begun.
Recovery of the market
BCREA Chief Economist Cameron Muir states that the turn-around began in June, and despite recent low sales volume numbers, the seasonally adjusted view is that the upswing is in effect, indicating that relative demand and prices are rising by 3.5%.
Recovery of the market through rising demand has been seen in many parts of the Greater Toronto Area, and only one of the 12 real estate boards failed to report an increase in average sales price for August 2018.
Increasing sales volumes in Ontario and Alberta are cited as further evidence of the expected B.C. recovery, as Muir says B.C. is expected to follow suit.
Consequently, investors can look to the future with the view that numbers will continue to rise in the next few months.
If you want to discuss the market, please reach out using the form below or give us a call to (604) 281.1050.