A continuing trend in B.C. real estate has seen the number of homes and condos for sale drop to a 20-year-low, which means it's a seller's market right now.
But on the flipside, having fewer homes on the market means prices are very high as demand continues to outpace supply.
According to a report from the B.C. Real Estate Association (BCREA), B.C. has hit that 20-year-low for the number of homes on the market after inventory dropped 17% from April 2016 - and down a whopping 50% since 2012 after an adjustment for seasonal variance.
The BCREA says that lack of supply is making the ongoing affordability problem worse.
And, according to Cameron Muir, chief economist for the BCREA, the conditions haven't been seen in a long, long time in British Columbia.
"We're really in almost uncharted territory where we see overall active listings in the market have been steadily declining for many years," said Muir told CBC. "That has certainly lead to upward pressure in prices in most markets in the southern half of the province right now."
That means sellers are getting an excellent return on their homes.
For there to be a true seller's market, the measuring stick is the ratio of sales to active listings. The higher the ratio, the more busy the market is and the more it leans towards favouring sellers over buyers.
According to Muir, a sales to active listings ratio of greater than 20% is considered to be a "seller's market." BCREA data shows the ratio is higher than 20% in every region of B.C. except for the Kootenay and Northern area.
Current lower inventory levels are because of the demand for housing that's been bolstered by job growth and a larger number of people moving to B.C. from other provinces.
Posted by Marv Beer on
Leave A Comment