August sales were up 56 per cent in the Fraser Valley and 63 per cent in Chilliwack as price increases hit double-digits
WI Staff Western InvestorSeptember 14, 2020
The Fraser Valley, including Chilliwack, posted impressive sales increases in August as total home sales across B.C. soared from the same month a year earlier.
B.C. home sales rose nearly 43 per cent in August, year-over-year, according to the British Columbia Real Estate Association (BCREA), and were up 55.9 per cent in the Fraser Valley and 63 per cent higher in Chilliwack.
Seasonally adjusted sales have continued their sharp V-shaped recovery after dropping off steeply during the height of the COVID-19 pandemic, the BCREA notes. Strong sales are expected to continue through this fall, with total higher sales expected this year than in 2019, despite a global pandemic.
Sales recorded on the Multiple Listing Service (MLS) in August were up 42.8 per cent year-over-year. The increase follows similar double-digit gains in July (26.6 per cent) and June (16.9 per cent). Sales were down more than 45 per cent in May and by nearly 51 per cent in April, year-over-year.
“Very strong provincial home sales continued in August,” noted British Columbia Real Estate Association (BCREA) chief economist Brendon Ogmundson.
“While pent-up demand from the spring is driving much of the increase, we anticipate a sustained strong level of sales through the fall.”
Sales in Greater Vancouver rose by 38.4 per cent year-over-year for the month of August. The average home price rose 10.6 per cent in Greater Vancouver, to $1.07 million, and 14 per cent in the Fraser Valley, to $820,585. The average Chilliwack home price is up 14 per cent to nearly $587,000.
Across B.C., the average MLS residential price increased 12.7 per cent to just over $771,000 last month, compared to August 2019.
The biggest year-over-year price increase is in the South Okanagan, where average home prices surged 32.7 per cent to $539,451; and in Central Okanagan, including Kelowna, where the average home price is now $636,431,up 23.2 per cent from August of 2019.
The latest data published by the BCREA also shows that the August sales dollar volume rose 61.1 per cent to $7.8 billion.
For the first eight months of 2020, the total B.C. sales dollar volume is up 15.8 per cent to $40.4 billion, compared to a year earlier.
The BCREA noted that active listings remain down 10 per cent across the province, with some markets even more under-supplied, which has led to higher home prices.