I just received my copy of the Landcor British Columbia 2007 Residential Sales Report and thought I would share some insights and market stats with you. The report shows that despite economic problems in the US, BC real estate continued to flourish in 2007. According to the report, in 2007, the residential property market showed gains of 15% over 2006 in dollar volume reaching a record high of 62 Billlion. Overall, property sales (incl. single family, townhomes and condos) only slipped a slight 0.6% from 2006.
Here are some of the other main points of interest:
- Recreation and land property sales increased 20% over 2006
- Dollar value of vacant land sales increased 38% over 2006
- # Sales increased in Greater Vancouver, Van. Island and Kootenays
- # Sales decreased in Okanagan, Fraser Valley & Northern BC
- Median home price in Kootenays increased 37.4%
- Approx. 9, 375 secondary homes buyers from out-of-province
- 70% of those buyers from Alberta and 20% international (10% US)
While # sales declined only slightly in the Okanagan and Fraser Valley, they declined by 7% in Northern BC, most likely due to the weaker labour market as a result of the US housing collaspse and less demand for lumber. Despite these areas having slightly weaker sales, dollar value of sales still increased over 2006 as median sales prices increased in all regions and for most property types in 2007.
The out-of province buyers statistics correlate closely to the viewing audience of our site. Of the Albertans who purchased second homes in BC, around 50% originated from Calgary. Americans made up around 10% of international buyers.
The report remains positive for the 2008 market citing solid gains in the labour market and lower mortgage rates. In addition, the report forecasts that the Okanagan, Vancouver Island and the Kootenays will continue to see demand from retirees and second home buyers.
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