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| Vancouver, BC – January 15, 2019. The British Columbia Real Estate Association (BCREA) reports that a total of 78,345 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in 2018, a decline of 24.5 per cent from the 103,758 units sold in 2017. The annual average MLS® residential price in BC was $712,508, an increase of 0.4 per cent from $709,601 recorded the previous year. Total sales dollar volume was $55.8 billion, a 24.2 per cent decline from 2017.“BC home sales fell below the 10-year average of 84,800 units in 2018,” said Cameron Muir, BCREA Chief Economist. “The sharp decline in affordability caused by the B20 mortgage stress test is largely to blame for decline in consumer demand last year.”A total of 3,497 MLS® residential unit sales were recorded across the province in December, down 39.1 per cent from December 2017. The average MLS® residential price in BC was $695,647, a decline of 5.2 per cent from December 2017. Total sales dollar volume was $2.4 billion, a 42.3 per cent decline during the same period.Total active residential listings were up 33.3 per cent to 27,615 units in December, the highest December inventory since 2014 when 33,995 active residential listings were recorded. |
| The British Columbia Real Estate Association (BCREA) is the professional association for about 23,000 REALTORS® in BC, focusing on provincial issues that impact real estate. Working with the province’s 11 real estate boards, BCREA provides continuing professional education, advocacy, economic research and standard forms to help REALTORS® provide value for their clients. To demonstrate the profession’s commitment to improving Quality of Life in BC communities, BCREA supports policies that help ensure economic vitality, provide housing opportunities, preserve the environment, protect property owners and build better communities with good schools and safe neighbourhoods. For detailed statistical information, contact your local real estate board. MLS® is a cooperative marketing system used only by Canada’s real estate boards to ensure maximum exposure of properties listed for sale. |
BC Home Sales Continue at Slower Pace
Vancouver, BC – December 14, 2018. The British Columbia Real Estate Association (BCREA) reports that a total of 5,179 residential unit sales were recorded by the Multiple Listing Service® (MLS®) across the province in November, down 33.1 per cent from the same month last year. The average MLS® residential price in BC was $718,903, a decline of 1.9 per cent from November 2017. Total sales dollar volume was $3.7 billion, a 34.3 per cent decline from November 2017.
“BC households continue to struggle with the sharp decline in purchasing power caused by the B20 mortgage stress test,” said Cameron Muir, BCREA Chief Economist. “Most BC regions are now exhibiting relative balance between supply and demand.”
Total active residential listings were up nearly 31 per cent to 33,500 units in November, compared to the same month last year. However, it should be noted that this compares to 2017, when active listings for the month of November were at their lowest level in more than 15 years.
Year-to-date, BC residential sales dollar volume was down 23.1 per cent to $53.4 billion, compared with the same period in 2017. Residential unit sales declined 23.6 per cent to 74,847 units, while the average MLS® residential price was up 0.7 per cent to $713,302.
On November 5, 2018, the provincial government of British Columbia approved amendments to the Real Estate Development Marketing Act and the Real Estate Development Marketing Regulations, in order to facilitate disclosure of information to provincial and federal authorities. Effective January 1, 2019, these amendments will require developers to (among other things):
- include certain prescribed terms and notices in their purchase agreements and their disclosure statements, in order to inform buyers of information collection and reporting requirements (which are triggered by an assignment of a purchase agreement);
- collect certain prescribed information from assignors and assignees of purchase agreements;
- on a quarterly basis, report the prescribed information to the Condo and Strata Assignment Integrity Register, a database for tracking assignments of purchase agreements for presale strata lots, administered by the Land Title and Survey Authority of British Columbia through an online platform; and
- collect and retain assignment agreements for a prescribed period of time.
As a result, and as further set out in the Superintendent of Real Estate’s draft Policy Statement 16, relating to the amendments, we expect that developers in the process of marketing or selling strata units will have to update their purchase agreements and their disclosure statements to make reference to the above collection and reporting requirements. Additionally, we expect that developers who have pre-sold all of their units will still need to amend their disclosure statements. However, developers who have transferred title to all strata lots within their development will not need to amend past disclosure statements.
Before developers consent to any assignments of purchase agreements, developers must ensure that they have collected certain prescribed information from all parties to the assignment. Developers should be aware that the amendments define “assignment” very broadly to effectively mean any change in who the purchaser is. For example, adding the purchaser’s spouse to a transfer of title will be considered an assignment. Accordingly, developers should obtain assignment agreements for any such changes, and collect and report the prescribed information.
The amendments pose onerous restrictions and obligations on developers. Since developers who do not adhere to the above disclosure requirements may face significant fines and penalties, we advise developers to seek legal advice with respect to the amendments as soon as possible. Members of Clark Wilson’s Commercial Real Estate group are contacting our clients on an urgent basis to assist them with compliance.
For more information in respect of the amendments and the Condo and Strata Assignment Integrity Register, please view the following:
BC Home Sales to Rise in 2019
BCREA 2018 Fourth Quarter Housing Forecast
Vancouver, BC – November 8, 2018. The British Columbia Real Estate Association (BCREA) released its 2018 Fourth Quarter Housing Forecast today.
Multiple Listing Service® (MLS®) residential sales in the province are forecast to decline 23 per cent to 80,000 units this year, after recording 103,768 residential sales in 2017. MLS® residential sales are forecast to increase 12 per cent to 89,500 units in 2019. The 10-year average for MLS® residential sales in the province is 84,800 units.
“The marked erosion of affordability and purchasing power caused by the mortgage stress test and rising interest rates continue to be a drag on the housing demand,” said Cameron Muir, BCREA Chief Economist. “However, continuing strong performance in the economy combined with favourable demographics is expected to push home sales above their 10-year average in 2019.”
Despite the mortgage policy drag on the sector, strong performance of the BC economy continues to be highly supportive of housing demand. Five consecutive years of above trend growth in the province has led to a high level of employment and an unemployment rate that appears to be at a cyclical low.
The combination of fewer home sales and a larger inventory of homes for sale has helped trend most markets to balanced conditions. As a result, home price growth has slowed considerably, and is expected to more closely reflect overall consumer price inflation through 2019. In addition, a record number of homes are under construction in BC, which will provide for much needed expansion of the housing stock and greater price stability.
August Home Sales Suggest Impact of Stress Test Fading
Vancouver, BC September 13, 2018. The British Columbia Real Estate Association (BCREA) reports that a total of 6,743 residential unit sales were recorded by the Multiple Listing Service® (MLS®) across the province in August, a 26.4 per cent decrease from the same month last year. The average MLS® residential price in BC was $669,776, down 1.2 per cent from August 2017. Total sales dollar volume was $4.5 billion, a 27.3 per cent decline from August 2017.
The downturn in housing demand induced by the mortgage stress-test is now largely behind us, said Cameron Muir, BCREA Chief Economist. The BC housing market is evolving along the same path blazed by Ontario and Alberta, where the initial shock of the mortgage stress-test is already dissipating, leading to increasing home sales.
Year-to-date, BC residential sales dollar volume was down 19.9 per cent to $41 billion, compared with the same period in 2017. Residential unit sales decreased 21.3 per cent to 57,674 units, while the average MLS® residential price was up 1.7 per cent to $719,064.
August 13, 2018. The British Columbia Real Estate Association (BCREA) reports that a total of 7,055 residential unit sales were recorded by the Multiple Listing Service® (MLS®) across the province in July, a 23.9 per cent decrease from the same month last year. The average MLS® residential price in BC was $695,990, down 0.4 per cent from July 2017. Total sales dollar volume was $4.9 billion, a 24.2 per cent decline from July 2017.
The BC housing market continues to grapple with the sharp decline in affordability caused by tough new mortgage qualification rules, said Cameron Muir, BCREA Chief Economist. However, less frenetic housing demand has created more balanced market conditions in many regions, leading to fewer multiple offers and more choice for consumers.
Year-to-date, BC residential sales dollar volume was down 18.9 per cent to $37 billion, compared with the same period in 2017. Residential unit sales decreased 20.6 per cent to 50,926 units, while the average MLS® residential price was up 2.1 per cent to $725,639.
Insurance and Wildfires – some information gathered together by BCREA:
As of August 6, more than 300 active fires were burning throughout BC, with evacuation orders and alerts impacting hundreds of properties. From a real estate practice perspective, it’s important for REALTORS® to know what their clients should expect with regard to home insurance for those living in areas affected by wildfire.
First of all, existing insurance policies and renewals aren’t affected.
Second, insurance is for unforeseen events. So, when a client’s home is in an area under evacuation alert or order, it’s fair to expect that new insurance policies are unlikely to be approved until the threat eases. Some insurers may also restrict new policies based on proximity to fires, even when no evacuation orders or alerts are declared. Changes to existing insurance policies, such as requested increases to coverage limits, may also be declined.
Third, insurance for properties in unprotected fire districts is more expensive than in protected fire districts. An unprotected fire district is an area without fire hydrants and a fire department. What can REALTORS® do?
- Buyers who have trouble obtaining insurance should be encouraged to contact several insurance providers, because they have different approaches and criteria.
- Where buyers aren’t able to obtain insurance, they should seek legal advice.
- REALTORS® can help protect homebuyers by using the Subject to Fire/Property Insurance clause developed by the Real Estate Council of BC:
“This offer is subject to the Buyer obtaining approval for fire/property insurance, on terms and at rates, satisfactory to the Buyer, on or before (date). This condition is for the sole benefit of the Buyer.”
- Brokers may also wish to contact their company solicitors for guidance as to how they should deal with this issue.
Additional resources
- FireSmart Manual from the BC Wildfire Service: www.bcwildfire.ca/Prevention/firesmart.htm.
- Tips and information about fire safety from the Insurance Bureau of Canada: www.ibc.ca/bc/disaster/fire.
- Information on evacuation orders and alerts from EmergencyInfoBC: www.emergencyinfobc.gov.bc.ca.
The Canadian Real Estate Association is lowering its national home sales forecast for this year due to weaker sales in B.C. and Ontario.
The industry association says it now expects home sales this year to fall 11 per cent compared with a year ago to 459,900 units this year.
The prediction compared with a forecast for a 7.1 per cent decline the association released in March.
The updated forecast came as CREA reported actual home sales in May hit a seven-year low as they fell 16.2 per cent compared with a year ago.
The national average price for homes sold in May was just over $496,000, down 6.4 per cent from a year ago.
Excluding the Greater Toronto and Greater Vancouver areas, the average price was just over $391,100, down two per cent.