Canadian province's real estate sector sets a new record in May

The number of residential units sold across British Columbia hit a record high in May, according to British Columbia Real Estate Association data released June 15.

A total of 13,458 homes changed hands in the month, breaking the previous record of 12,969 units set just a month before. It was also 32 per cent higher than the number of homes sold in May 2015.

The total dollar value of homes sold in May was US$7.51 billion, which is up 51 per cent compared with last May. The average home sales price across the province was US$558,113, up 14 per cent compared with last year.

“Record housing demand and dwindling inventories are continuing to push home prices higher in most B.C. regions,” said BCREA chief economist Cameron Muir. “Total active residential listings across the province are nearly 30 per cent lower than 12 months ago.”

Muir said demand is pushing new home construction activity to a near-record pace across B.C.

In Greater Vancouver alone, 4,910 units were sold in May, up 18.5 per cent year-over-year. The total dollar value of all sales was uS$4 billion, which is a 38 per cent increase over the US$2.89 billion sold in May 2015.

Muir pointed out that in Metro Vancouver, a record number of homes are currently under construction.

“Once the current crop of homes are ready for occupancy, there will likely be more selection for home buyers and less upward pressure on home prices.”

The average home sales price in Greater Vancouver reached US$815,664. This is a 16.5 per cent increase from May 2015’s average price of US$699,919.