October 2008

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Vancouver, BC – October 15, 2008. British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service (MLS) in BC declined 39 per cent to $2.1 billion in September, compared to September 2007. Residential unit sales were down 34 per cent to 5,107 units during the same period. The average MLS residential price in the province was $412,149, down 7 per cent from September 2007.

“Weaker consumer demand and a large number of homes for sale are having an impact on home prices in the province,” said Cameron Muir, BCREA Chief Economist. “Despite relatively strong fundamentals, consumer confidence is low.

The global liquidity crisis and volatile equity markets are intensifying this sentiment, causing many households to pull back spending on major purchases.”

“However, affordability is improving,” added Muir. “The carrying cost of the average home in the province is now lower than at any time since the end of 2006.”

Year-to-date MLS residential sales dollar volume in the province declined 24 per cent to $27.5 billion compared to the same period last year. Provincial MLS sales declined 28 per cent to 59,742 units, while the average residential price increased 6 per cent to $460,621 over the same period.

Full story and graphs in the pdf link below.

home-prices-down-affordability-improves-british-columbia-real-estate-association

Here is the latest Kamloops MLS Residential Sales by Sub-Area, for the month of September 2008. Published by the Kamloops and District Real Estate Association. This chart will help you see how many residential properties have sold in a given neighbourhood and the price range it sold in. The type of property is not displayed in this chart. Look at the Kamloops Real Estate, Comparative Analysis by Property Type for September, 2008 post found here: Link

kamloops-residential-mls-sales-by-sub-area-for-the-month-of-september-2008-pdf

Kamloops Residential MLS Sales by Sub-Area, for the month of September 2008

Kamloops Residential MLS Sales by Sub-Area, for the month of September 2008

Here is the latest Kamloops Real Estate, Comparative Analysis by Property Type for September, 2008. Supplied by the Kamloops & District Real Estate Association. With this chart you can get an idea of what property types are: Active listings, newly listed, # of units sold and the value of those units. These totals are down a bit from last month.

A quick summary for total residential active, new and sold listing for September 2008 for Kamloops and surrounding areas:

Residential # of active listings 1853
Residential # of new listings 428
Residential # of sold listings 200
Value of sold units $57,937,337

kamloops-comparative-analysis-by-property-type-september-2008 pdf

Kamloops Real Estate MLS Listings Comparative Analysis by Property Type, September, 2008

Kamloops Real Estate MLS Listings Comparative Analysis by Property Type, September, 2008

Here is the most recent Kamloops MLS activity report from the Kamloops and District Real Estate Association for September 2008.

It’s great news for buyers! If you are a  seller have a look at this post “5 Tips for Selling in a Buyers Market”.

Kamloops MLS Activity Report September 2008

Kamloops MLS Activity Report September 2008

I hate to keep bringing bad news to the blog. Of course this is just another opinion. Robert Shiller is predicting that real estate markets in Calgary and Vancouver will be hurt the most if there is a serious down-turn in housing prices.

Canada may face housing bust: Robert Shiller

The Canadian housing market could face a similar housing bust to the United States, particularly in more bubbly markets as Vancouver and Calgary, said Robert Shiller, the Yale University professor who predicted both the 1990s stock market boom and bust and the US housing slump.

Mr. Shiller, co-founder of the S&P Case/Shiller Home Price Index, said psychology is the primary driver of bubbles and it appears that Canada has been caught up with home buying fever just as the United States and other countries around the world.

Asked whether that meant Canada could face a similar bust Mr. Shiller said: “Yes, especially in places that went up a lot like Vancouver and Calgary. I don’t think Toronto has been quite as extreme.”

Mr. Shiller said there was a natural connection between the United States and Canada.

“I would be surprised that the bubble that appeared in the United States and elsewhere didn’t appear in Canada,” he said in an interview with the Financial Post. “It’s psychology, I think that drives it.

Mr. Shiller, whose book Irrational Exuberance came out in March 2000 just as the tech bubble peaked, said it was essential for the U.S. government to pass a financial bailout, though he believes the United States is facing a “severe recession,” regardless.

“I’m concerned problems are deeper than can be handled by the bailout but that doesn’t mean the bailout doesn’t do some good,” he said.

He said a bailout might help restore some confidence to the stressed financial system.

“What creates a crisis is a lack of confidence,” he said.

He said the housing crisis was primarily a policy failure by U.S. authorities.

You can read the rest of the story below.

Link