Home sales in British Columbia are predicted to continue to increase over the next two years after moderate growth in 2011 according to the latest forecast from the British Columbia Real Estate Association.

The BC real estate market ended last year with a total of 76,817 home sold throughout the province in 2011, a +2.9% increase over the 74,640 home sales in 2010.

“Low mortgage interest rates and gradually improving economic conditions contributed to a moderate increase in consumer demand last year,” said Cameron Muir, BCREA Chief Economist.

Muir added that in 2011, “BC home sales came in about on par with their 15- year average, but fell well below their ten-year average of over 88,000 units.”

The 15-year Provincial average for MLS home sales in British Columbia is 79,000 units, with the record for the highest yearly sales over that period occurring in 2005 with 106,310 residential home sold in British Columbia that year.

Residential home sales in British Columbia are forecast to increase by +2.1% in 2012 to 78,400 residential home sales and increase a further + 2.7% to 80,500 residential home sales in 2013 according to the latest British Columbia Real Estate Association first quarter Housing Forecast released on January 27, 2012.

“Modest economic growth at home and abroad is expected to limit growth in consumer demand both this year and in 2013,” said Cameron Muir, BCREA Chief Economist.

British Columbia – Residential Housing Sales Forecast 2012 to 2013:

“While European sovereign debt concerns and a sluggish US economy will continue to impact consumer confidence, strong demand in the bond market is expected to keep mortgage interest rates at or near record lows for most of 2012,” added Muir.

There are currently eleven (11) member boards represented by the BC Real Estate Association (BCREA) Housing Forecast including:

• Victoria – VREB
• Vancouver Island – VIREB
• Powell River Sunshine Coast – PRSCREB
• Greater Vancouver – REBGV
• Fraser Valley – FVREB
• Chilliwack and District – CADREB
• Kamloops and District
• Okanagan Mainline – OMREB
• South Okanagan – SOREB
• Kootenay – KREB
• BC Northern – BCNREB

The provincial real estate association expects British Columbia housing markets to post relatively unremarkable results in 2012. Inventories of homes for sale across the Province are expected to continue to wane in most regions with consumer demand constrained by modest economic growth at home and abroad.

A look at the latest BCREA Housing Forecast across the Province indicates that MLS residential homes sales in some British Columbia regions are expected to fair better than others in 2012 and 2013.

Victoria – Residential MLS Housing Sales Forecast for 2012 to 2013:

Vancouver Island – Residential Housing Sales Forecast for 2012 to 2013:

Powell River / Sunshine Coast – Residential Housing Sales forecast for 2012 to 2013:

Greater Vancouver – Residential Housing Sales Forecast for 2012 to 2013:

Fraser Valley – Residential Housing Sales Forecast for 2012 to 2013:

Chilliwack – Residential Housing Sales Forecast for 2012 to 2013:

Kamloops – Residential Housing Sales Forecast for 2012 to 2013:

Okanagan Mainline – Residential Housing Sales Forecast for 2012 to 2013:

South Okanagan – Residential Housing Sales Forecast for 2012 to 2013:

Kootenay – Residential Housing Sales Forecast for 2012 to 2013:

BC Northern – Residential Housing Sales Forecast for 2012 to 2013:

According to the BCREA forecast, “Most BC markets are expected to exhibit buyers’ to balanced market conditions this year, with weaker regions experiencing improvement through 2013.”

2012 BCREA Q1 – MLS Home Sales and Price Forecast Summary:

• BC Provincial – MLS home sales are forecast to rise by +2.1% in 2012 and +2.7% in 2013.
• Victoria – VREB MLS home sales are forecast to rise by +3.1% in 2012 and +2.5% in 2013.
• Vancouver Island – VIREB MLS home sales are forecast to rise by +2.4% in 2012 and +2.4% in 2013.
• Powell River Sunshine Coast – PRSCREB MLS home sales are forecast to decrease by -4.2% in 2012 and rise by +1.7% in 2013.
• Greater Vancouver – REBGV MLS home sales are forecast to rise by +1.7% in 2012 and +2.7% in 2013.
• Fraser Valley – FVREB MLS home sales are forecast to rise by +1.2% in 2012 and +2.3% in 2013.
• Chilliwack and District – CADREB MLS home sales are forecast to rise by +2.1% in 2012 and +2.8% in 2013.
• Kamloops and District – MLS home sales are forecast to decrease by -2.9% in 2012 and increase by +3.9% in 2013.
• Okanagan Mainline – OMREB MLS home sales are forecast to rise by +4.1% in 2012 and +2.9% in 2013.
• South Okanagan – SOREB MLS home sales are forecast to rise by +4.0% in 2012 and +4.0% in 2013.
• Kootenay – KREB MLS home sales are forecast to rise by +0.5% in 2012 and +3.2% in 2013.
• BC Northern – BCNREB MLS home sales are forecast to rise by +4.1% in 2012 and +3.5% in 2013.

The forecast for the BC real estate market going forward is characterized by lukewarm performance in the job market that will keep unemployment rates relatively high, while uncertainty around European sovereign debt will keep bond markets buoyant and mortgage rates low, therefore a negative impact on consumer confidence will be sustained.

In a CTV interview on January 27, 2012 Cameron Muir, BCREA Chief Economist said, “It’s not going to be a very sexy year in the housing market.”

He went on to say that a number of factors are responsible for the unusually stable BCREA forecast this year, including low interest rates and “tepid economic growth.”

With provincial home sales and average MLS prices dropping in the last month of 2011, it may be no surprise that the total number of homes for sale across British Columbia also dropped in December 2011.

The British Columbia Real Estate Association (BCREA) reported that there were 40,177 active residential MLS listings on the provincial Multiple Listing Service (MLS) in December 2011, down -15.6% from the 47,597 active listings in November 2011. The only month with fewer homes for sale for the entire year of 2011 was in January, with 38,746 active MLS listings in BC.

A seasonal decline can be considered somewhat normal. December 2010 saw total active MLS listing in BC decline by -14.9% over the previous month of November 2010.

British Columbia Real Estate – BCREA December 2011 – Active Provincial MLS Listings Drop -15.6% (-7,420 units) to 40,177 total.

Compared to the same month in the previous year, total active MLS listings of homes for sale in British Columbia increased by +6.33% to 40,177 in December 2011 from 37,785 in December 2010.

2010-2011 BCREA – Total MLS Active Listings for British Columbia:

Here is a summary of total active MLS listings activity for every real estate board in British Columbia as reported by the BCREA.

December 2011 – BCREA – Total Active Listings (+/- over previous month):

• BC Northern Real Estate – BCNREB December 2011 – Active MLS listings down -19.45% (-457 units) to 1,893 total.
• Chilliwack Real Estate – CADREB December 2011 – Active MLS listings down -23.69% (-413 units) to 1,330 total.
• Fraser Valley Real Estate – FVREB December 2011 – Active MLS listings down -22.79% (-1,759 units) to 5,958 total.
• Greater Vancouver Real Estate – REBGV December 2011 – Active MLS listings down -18.24% (-2,695 units) to 12,082 total.
• Kamloops Real Estate – December 2011 – Active MLS listings down -14.56% (-275 units) to 1,614 total.
• Kootenay Real Estate – KREB December 2011 – Active MLS listings up -23.13% (+636 units) to 3,386 total.
• Okanagan Mainline Real Estate – OMREB December 2011 – Active MLS listings down -15.18% (-824 units) to 4,605 total.
• Powell River Real Estate – PRSCREB December 2011 – Active MLS listings down -9.71% (-20 units) to 186 total.
• South Okanagan Real Estate – SOREB December 2011 – Active MLS listings down -15.81% (-287 unit) to 1,528 total.
• Vancouver Island Real Estate – VIREB December 2011 – Active MLS listings down -15.08% (-798 units) to 4,495 total.
• Victoria Real Estate – VREB December 2011 – Active MLS listings down -14.73% (-501 units) to 2,901 total.

Total active MLS listings declined in every real estate board across British Columbia in December 2011 except the Kootenay (KREB) region, which saw a +23.13% increase of 636 more listings than the previous month.

The largest decrease in the number of listings in December 2011 occurred in the Greater Vancouver (REBGV) region, which saw a drop of -2,695 listings or -18.24% from the previous month.

British Columbia – Total Active Listings by Real Estate Board – December 2011:

In December, the British Columbia real estate market saw the second largest month-over-month percentage decline in active provincial MLS listings in all of 2011. It was also the fifth-consecutive month of declines in active listings as BC sellers exited the market leaving less available inventory of homes for sale.

The real estate market in British Columbia ended the year in December 2011 with average Provincial residential MLS home prices dropping to their lowest monthly level in all of 2011 and the lowest since September 2010.

In their January 13, 2012 new release, the British Columbia Real Estate Association (BCREA) reported that residential average MLS home prices in BC decreased by -3.7% to $509,570 in December 2011 from $529,140 in November 2011.

Since the start of the year, average BC home prices sold through the provincial MLS system have dropped by -7.04% from $548,183 in January 2011 to $509,570 in December 2011.

British Columbia Real Estate – BCREA December 2011 – Average Provincial MLS Residential Home Prices Decline -3.7% (-$19,570) to $509,570.

Compared to the same month last year, the December 2011 residential average home price of $509,570 represents a -2.8% decline from year ago figures of $523,990 in December 2010.

2010-2011 BCREA – Average MLS Residential Home Prices for BC:

There are currently eleven (11) member boards represented by the BC Real Estate Association (BCREA) including:

• BC Northern – BCNREB
• Chilliwack and District – CADREB
• Fraser Valley – FVREB
• Greater Vancouver – REBGV
• Kamloops and District
• Kootenay – KREB
• Okanagan Mainline – OMREB
• Powell River Sunshine Coast – PRSCREB
• South Okanagan – SOREB
• Vancouver Island – VIREB
• Victoria – VREB

Here is a summary of residential average MLS home price for every real estate board in British Columbia as reported by the BCREA.

December 2011 – BCREA – Average MLS Home Price (over previous month):

• BC Northern Real Estate – BCNREB December 2011 – Average home prices decrease -9.03% (-$20,328) to $204,911
• Chilliwack Real Estate – CADREB December 2011 – Average home prices increase +3.56% (+$9,685) to $281,485
• Fraser Valley Real Estate – FVREB December 2011 – Average home prices increase +4.18% (+$20,021) to $498,989
• Greater Vancouver Real Estate – REBGV December 2011 – Average home prices decline -5.36% (-$39,061) to $689,057
• Kamloops Real Estate – December 2011 – Average home prices increase +0.51% (+$1,502) to $293,282
• Kootenay Real Estate – KREB December 2011 – Average home prices increase +3.55% (+$9,786) to $285,725
• Okanagan Mainline Real Estate – OMREB December 2011 – Average home prices increase +9.48% (+33,996) to $392,450
• Powell River Real Estate – PRSCREB December 2011 – Average home prices increase +5.82% (+11,327) to $205,906
• South Okanagan Real Estate – SOREB December 2011 – Average home prices decline -12.50% (-$40,098) to $280,599
• Vancouver Island Real Estate – VIREB December 2011 – Average home prices decline -0.10% (-$302) to $315,536
• Victoria Real Estate – VREB December 2011 – Average home prices decline -6.04% (-30,192) to $469,484

The Okanagan Mainline (OMEB) real estate board region had the highest average residential MLS monthly percentage price increase within BC real estate boards in December 2011 with a +9.48% rise which translated into a +$33,996 dollar value increase.

In December 2011, the largest monthly percentage decline in average residential MLS home prices in British Columbia occurred within the South Okanagan (SOREB) real estate board area with a overall decrease of -12.50% which translates into a -$40,098 dollar value decrease.

British Columbia – Average MLS Price by Real Estate Board – December 2011:

According to figures from the BCREA, total British Columbia residential home sales dollar volumes thru the provincial MLS system declined by -4.4% in December 2011 to $2,133,061 from the same month a year ago when the total sales volume was $2,231,148 in December of 2010.

The British Columbia real estate market ended the year by recording residential home sales figures in December that were the second lowest monthly sales volume in 2011. December saw a continuation of residential sales declines for the sixth consecutive month as actual BC home sales figures have continued to decrease since June 2011, when we saw the last Provincial monthly home sales gain.

The British Columbia Real Estate Association (BCREA) reported that there were 4,186 residential property sales thru the provincial Multiple Listing Service (MLS) in December 2011, down -25.8% from the 5,640 units sold in November 2011.

This years December MLS home sales of 4,186 units across British Columbia is down by -1.7% from the same month last year when there were 4,258 units sold in December 2010.

British Columbia Real Estate – BCREA December 2011 – MLS Residential Home Sales Drop -25.8% (-1,454 units) to 4,186 total.

Last year at this time, December 2010, BC Provincial home sales saw a -24.6% decrease over the previous month of November 2010.

2010-2011 BCREA – Total MLS Residential Sales for British Columbia:

There are currently eleven (11) member boards represented by the BC Real Estate Association (BCREA) including:

• BC Northern – BCNREB
• Chilliwack and District – CADREB
• Fraser Valley – FVREB
• Greater Vancouver – REBGV
• Kamloops and District
• Kootenay – KREB
• Okanagan Mainline – OMREB
• Powell River Sunshine Coast – PRSCREB
• South Okanagan – SOREB
• Vancouver Island – VIREB
• Victoria – VREB

Here is a summary of residential MLS home sales activity for every real estate board in British Columbia as reported by the BCREA.

BCREA – December 2011 – Sales Increase/Decrease (over previous month):

• BC Northern Real Estate – BCNREB December 2011 home sales down -33.33% (-105 units) to 210 total.
• Chilliwack Real Estate – CADREB December 2011 home sales down -6.98 (-9 units) to 120 total.
• Fraser Valley Real Estate – FVREB December 2011 home sales down -21.54% (-224 units) to 816 total.
• Greater Vancouver Real Estate – REBGV December 2011 home sales down -29.02% (-695 units) to 1,700 total.
• Kamloops Real Estate – December 2011 home sales down -30.87% (-46 units) to 103 total.
• Kootenay Real Estate – KREB December 2011 home sales up +31.52% (+52 units) to 217 total.
• Okanagan Mainline Real Estate – OMREB December 2011 home sales down -30.35% (-112 units) to 257 total.
• Powell River Real Estate – PRSCREB December 2011 home sales down -52.94% (-18 units) to 16 total.
• South Okanagan Real Estate – SOREB December 2011 home sales down -3.49% (-3 units) to 83 total.
• Vancouver Island Real Estate – VIREB December 2011 home sales down -30.96% (-139 units) to 310 total.
• Victoria Real Estate – VREB December 2011 home sales down -29.61% (-135 units) to 321 total.

Provincial home sales fell in every real estate market in December 2011 except for the Kootenay board area, which saw a +31.52% sales increase for the month.

Monthly home sales in British Columbia’s two largest real estate markets, both fell in December 2011, down by -21.54% in the Fraser Valley and down by -29.02% in Greater Vancouver markets.

British Columbia – MLS Sales Activity by Real Estate Board – December 2011:

The 1,700 units sold in Greater Vancouver along with the 816 units sold in the Fraser Valley resulted in combined total of 2,516 sales in December 2011, down -26.75% from the combined total of 3,435 these two real estate boards areas achieved in November 2011.

In December 2011 the 2,516 combined sales from the Greater Vancouver and Fraser Valley regions represented 60.1% of the total 4,186 residential MLS home sales in British Columbia. This was down slightly from 60.9% in November, up from 58.1% in October, 56.8% in September 2011, 56.9% in August 2011, 59.1% in July 2011, but still down from 61.0% in June 2011 and 62.91% in May 2011.

In their January 13, 2012 press release, the British Columbia Real Estate Association reported that BC Provincial residential MLS sales dollar volumes decreased by -4.4% to $2.13 billion in December 2011, compared to the same month last year when it was $2.23 billion in December 2010.

The pace of new construction across Metro Vancouver slowed in the final month of 2011 as builders reduced the number of new construction starts in December for the third consecutive month. The Lower Mainland construction start activity for the month of December also fell below 2010′s results according to a report from the Canada Mortgage and Housing Corporation. However, the year ended on a positive note as total housing starts in 2011 for Metro Vancouver were well ahead of 2010 figures.

CMHC reported that actual month-over-month Metro Vancouver housing starts in the Vancouver CMA were down -28.9% to 1,199 units in December 2011 from the previous month with 1,686 starts in November 2011. On a month-over-month basis, the 1,199 starts in December 2011 represent a -30.1% decrease from last year when there were 1,715 housing starts across Metro Vancouver in December 2010.

A substantial decrease in Metro Vancouver multi-family housing starts accounted for the majority of the December 2011 decline over the previous month and last year’s figures.

This is the third consecutive month of declines in new construction starts across the lower mainland following a -2.1% decline in November 2011 and a -3.4% decline in October 2011.

Metro Vancouver Housing Starts down -28.9% to 1,199 total in December 2011 (1,686 in Nov 2011) and down -30.1% from 1,715 units in Dec 2010.

Total housing starts for the Metro Vancouver area in 2011 ended the year with a +17% increase to 17,867 units from January to December 2011 compared to last year when there were 15,217 units over the same period in 2010.

Vancouver CMA – Total Housing Starts – 2010 and 2011:

Multiple housing starts across Metro Vancouver were surprisingly down by -40% in December 2011 to 886 units from 1,477 starts in December 2010 while single-detached home starts were up by +32% to 313 units in December 2011 from 238 starts in December 2010.

The top 5 lower mainland areas for total housing starts in December 2011 were, Richmond with 281 units, Surrey with 264 units, Vancouver City with 217 units, Langley District with 135 units and Coquitlam with 82 units.

Vancouver CMA Housing Starts – December 2011:

On a year-to-date basis the top 5 lower mainland areas for total housing starts from January to December 2011 were, Vancouver City with 3,830 new housing units started, Surrey with 3,807 units, Richmond with 2,636 units, Burnaby with 1,611 units and Coquitlam with 1,442 units.

Vancouver CMA Housing Starts – January to December 2011:

The following chart shows the percentage increase for Lower Mainland housing starts by area from 2010 to 2011 on a year-to-date basis.

On a year to date basis from in the Vancouver CMA (Census Metropolitan Area) from January to December 2011:

• Total overall Metro Vancouver housing starts increased +17% to 17,867 units in 2011 from 15,217 starts in 2010.
• Total single detached housing starts in Metro Vancouver decreased by -19% to 3,686 units in 2011 from 4,533 starts in 2010.
• Multiple housing starts in Metro Vancouver increased by +33% to 14,181 units in 2011 from 10,684 units in 2010.

“Multiple-family starts fuelled growth in new home construction in 2011,” noted Robyn Adamache, CMHC’s Senior Market Analyst.

“Solid market trends and a more positive economic outlook compared to a year ago have provided the impetus for developers to undertake larger projects in 2011.

Canadian municipalities saw the value of building permit applications decline by -3.6% as contractors across Canada took out $6.1 billion worth of permits in November 2011. This follows an especially strong October, which resulted in a +11.9% increase in building permit intentions according to the latest figures released by Statistics Canada on January 9, 2012.

A decline in non-residential building permits in November 2011, particularly in Ontario, offset increases in the residential sector across Canada.

The November decline was not a surprise as a recent Reuters survey, indicated that analyst’s expected a -3.0% overall decline in Canadian building permit activity, based on a median forecast.

Canadian residential sector building permit values increased by +6.9% in November 2011 while non-residential sector permits dropped by -17.6% across Canada for the month.

Prior to the October increase, municipalities across Canada saw a steady 3-month decline in building permit intentions in July, August and September 2011.

The total value of provincial building permits in November 2011 increased in Prince Edward Island, Nova Scotia, Manitoba, and British Columbia while Newfoundland and Labrador, New Brunswick, Quebec, Ontario, Saskatchewan, and Alberta saw declines.

Total building permits % monthly change in Canadian provinces:

• Newfoundland and Labrador – Total Building Permit Values Down -39.8% in November 2011
• Prince Edward Island – Total Building Permit Values Up +15.1% in November 2011
• Nova Scotia – Total Building Permit Values Up +53.8% in November 2011
• New Brunswick – Total Building Permit Values Down -7.3% in November 2011
• Quebec – Total Building Permit Values Down -1.0% in November 2011
• Ontario – Total Building Permit Values Down -13.2% in November 2011
• Manitoba – Total Building Permit Values Up +17.4% in November 2011
• Saskatchewan – Total Building Permit Values Down -10.5% in November 2011
• Alberta – Total Building Permit Values Down -7.9% in November 2011
• British Columbia – Total Building Permit Values Up +31.5% in November 2011

In their latest report issued on January 9, 2012, Statistics Canada stated:

Provincial view:

In November, the value of building permits decreased in six provinces, led by Ontario, followed by Alberta and Newfoundland and Labrador.

The declines in Ontario originated from lower construction intentions for institutional and commercial buildings, as well as multi-family dwellings. In Alberta, the drop was particularly attributable to institutional and industrial buildings, and single-family dwellings. Newfoundland and Labrador’s decrease was mainly the result of lower construction intentions for commercial buildings.

On the other hand, British Columbia recorded the largest increase as a result of gains in the residential sector as well as in the institutional and commercial buildings. Nova Scotia followed with increases in both residential and non-residential sectors.

Canadian residential sector building permits increased by +6.9% in November 2011, moving up to $3.9 billion following three consecutive months of decline. Statistics Canada figures show that British Columbia led the way with the highest value of residential construction intentions in November 2011.

Residential building permits % monthly change in Canadian provinces:

• Newfoundland and Labrador – Residential Building Permit Values Up +5.9% in November 2011
• Prince Edward Island – Residential Building Permit Values Up +2.9% in November 2011
• Nova Scotia – Residential Building Permit Values Up +54.1% in November 2011
• New Brunswick – Residential Building Permit Values Up +6.0% in November 2011
• Quebec – Residential Building Permit Values Up +1.5% in November 2011
• Ontario – Residential Building Permit Values Up +6.9% in November 2011
• Manitoba – Residential Building Permit Values Up +12.3% in November 2011
• Saskatchewan – Residential Building Permit Values Down -15.0% in November 2011
• Alberta – Residential Building Permit Values Down -5.0% in November 2011
• British Columbia – Residential Building Permit Values Up +29.5% in November 2011

Residential sector:

The value of building permits for single-family dwellings rose 8.2% to $2.4 billion, after posting slight changes during the three previous months. The advance was attributable to higher construction intentions in seven provinces, led by Ontario.

After three consecutive monthly declines, multi-family dwelling permits increased 5.0% to $1.5 billion. Gains in five provinces were behind the increase, with British Columbia posting the largest advance, followed by Nova Scotia and Quebec.

Nationally, municipalities approved the construction of 16,895 new dwellings, up 5.8% from October. The increase came from both single-family dwellings, which increased 6.2% to 7,199 units, and multi-family dwellings, which rose 5.5% to 9,696 units.

Non-residential building permits in Canada decreased by -17.6% to $2.2 billion in November 2011 as contractors slowed new building permit intentions in the sector.

Non-Residential building permits % monthly change in Canadian provinces:

• Newfoundland and Labrador – Non-Residential Building Permit Values Down -58.5% in September 2011
• Prince Edward Island – Non-Residential Building Permit Values Down -82.4% in November 2011
• Nova Scotia – Non-Residential Building Permit Values Up +31.1% in November 2011
• New Brunswick – Non-Residential Building Permit Values Down -24.0% in November 2011
• Quebec – Non-Residential Building Permit Values Down -5.7% in November 2011
• Ontario – Non-Residential Building Permit Values Down -32.2% in November 2011
• Manitoba – Non-Residential Building Permit Values Up +23.5% in November 2011
• Saskatchewan – Non-Residential Building Permit Values Down -5.2% in November 2011
• Alberta – Non-Residential Building Permit Values Down -12.5% in November 2011
• British Columbia – Non-Residential Building Permit Values Up +36.0% in November 2011

Non-residential sector:

The value of institutional permits declined 34.1% to $692 million, following an increase of 178.8% in October. Ontario posted the largest decline among the five provinces that registered decreases. Ontario’s decline came from lower construction intentions, particularly for medical facilities and government buildings, which had recorded significant gains the previous month.

Municipalities issued industrial permits worth $439 million, down 12.3% from October. This drop followed three consecutive monthly rises. The largest declines were in permits for manufacturing plants in Quebec and utilities buildings in Alberta and Manitoba. Ontario recorded the largest increases as a result of higher construction intentions for transportation and utilities buildings.

Commercial building intentions declined for a second consecutive month, falling 5.1% to $1.1 billion. Gains reported in seven provinces were not enough to offset decreases in Ontario, Newfoundland and Labrador and New Brunswick. Ontario posted the largest decline as a result of lower construction intentions, mostly for retail stores and recreational facilities.

The Canadian Building Permits Survey is released monthly by Statistics Canada. It covers over 2,400 municipalities across the country representing 95% of the Canadian population.

Residential home sales in the Fraser Valley ended 2011 relatively the same as the year prior with a seasonal decline in December that resulted in a sales level that almost duplicated results in 2010. This was in spite of the fact that there were -9.0% fewer active listing for buyers to choose from in the Fraser Valley market in December this year.

The Fraser Valley Real Estate Board (FVREB) reported that residential property sales through the MLS system in the Fraser Valley declined by -20.5% to 890 sales in December 2011, down from 1,120 sales in November 2011.

This years December sales figure of 890 home sales in the Fraser Valley was on par (-0.6%) with figures from a year ago when there were 895 residential sales in December 2010 but down substantially -29.4% from the 1,260 sales in December 2009.

There were 7,399 total active listing in the Fraser Valley Real Estate market in December 2011, down -9.1% from the 8,139 active listings for the same month a year ago in December 2010.

Fraser Valley Real Estate – FVREB November 2011 home sales down -20.5% (-230 units) to 890 total.

The Fraser Valley Real Estate Board (FVREB) serves the following British Columbia communities:

• North Delta
• Surrey
• White Rock
• Langley
• Abbotsford
• Mission

The following table shows the actual Fraser Valley Real Estate Board (FVREB) total MLS residential sales figures for each month in 2010 along with the 2011 sales figures.

2010-2011 FVREB – Total MLS Residential Sales for Fraser Valley:

This year home sales in the Fraser Valley declined more than last year on a month-over-month basis from November to December. In 2010, sales in December declined by -17.4% from November. In 2011, the situation was very similar however sales declined slightly more, down -20.5% in December from November.

Home sales across the Fraser Valley are usually susceptible to a seasonal decline at the end of the year; therefore a month-over-month sales decline was expected in December. However, this years -20.5% decrease in December 2011 from November 2011 is more than the -17.4% decrease in 2010 and the -17.2% in 2009 over the same period.

Total active MLS listings in the Fraser Valley declined in December 2011, dropping by -21.9% to 7,399 listings from 9,471 in November 2011.

New residential listings for the month of December in the Fraser Valley real estate market increased by +2.6% to 1,133 in December 2011 compared to 1,104 new listings posted for sale last year in December 2010.

With 890 sales and 7,399 total active listings on the MLS in the Fraser Valley real estate market in December 2011, the sales-to-active listing ratio stood at 12.02%, increasing from 11.83% the previous month, which according to the FVREB indicates that the market is in buyer’s market territory.

In December 2011, the average home price for all properties types in the Fraser Valley increased by +13.7% over the same month last year to $506,393 from $445,401 in December 2010.

In their January 4, 2012 news release, the Fraser Valley Real Estate Board stated that:

In December, the benchmark price of a detached home in the Fraser Valley was $522,998, an increase of 3.3 per cent compared to $506,145 in December 2010 and a decrease of 1.7 per cent compared to November.

For townhouses, the benchmark price in December was $315,330, a decrease of 2.1 per cent compared to the same month last year when it was $322,054 and down 3.8 per cent compared to November. The benchmark price of apartments in December was $237,285, a decrease of 1.2 per cent compared to December 2010 and a decrease of 0.5 per cent compared to November.

Total home sales this year are +4.3% ahead of last year’s figures with a total of 15,529 residential MLS home sales in the Fraser Valley from January to December 2011 compared to 14,891 sales over the same period in 2010.

The Fraser Valley Real Estate Board stated that “Overall, Fraser Valley’s real estate market in 2011 was below the 10‐year average in property sales and above average in the number of new listings received.”

Residential home sales in Greater Vancouver ended the year by making a surprising downward move in December 2011. Monthly residential home sales across the region plunged to a level not seen in over 2 years. In fact, you would have to go back to February 2009 to find a lower monthly sales figure.

In their press release, the Real Estate Board of Greater Vancouver (REBGV) reported that residential MLS home sales dropped by -29.7% in December 2011 to 1,658 sales compared to the 2,360 sales recorded in November 2011.

The 1,658 recorded MLS home sales in Greater Vancouver for December 2011 represent the lowest level of sales activity the region has seen in 34 months since February 2009 when there were 1,480 total residential homes sold on the regions MLS system.

Last months (December 2011) Greater Vancouver home sales figure of 1,658 residential units sold, was down by -12.7% from a year ago when there were 1,899 sales in December 2010 and down by -34.1% from two years ago when there were 2,515 sales in December 2009.

Rosario Setticasi, REBGV president, summed up 2011 as follows, “It was a relatively balanced year for the real estate market in Greater Vancouver with listing totals slightly above historical norms and sale numbers slightly below.”

Greater Vancouver Real Estate – REBGV December 2011 home sales down -29.7% (-702 units) to 1,658 total units. Lowest Monthly MLS Sales Figure in Over 2 Years.

New MLS listings in the Greater Vancouver region decreased dramatically by -49.4% in December 2011 with 1,629 detached, attached and apartment properties newly listed, down from 3,222 units in November 2011 and down by -62.8% from 4,374 units in October 2011.

Compared to last year, this December’s property listings represented a -4.1% decline from the 1,699 figure in December 2010.

For all of 2011, new residential home listings in Greater Vancouver from January to December have totaled 59,539 new listings in 2011, which is a +2.7% increase from the 58,009 new listings over the same period in 2010 and a +12.8% increase over the 52,869 residential properties listed in 2009.

The Real Estate Board of Greater Vancouver (REBGV) serves the following British Columbia communities:

• Burnaby
• Coquitlam
• Delta
• Gulf Islands
• Maple Ridge
• Pitt Meadows
• New Westminster
• North Vancouver
• Port Coquitlam
• Port Moody
• Belcarra
• Richmond
• Squamish
• Sunshine Coast
• Vancouver
• West Vancouver
• Howe Sound
• Whistler
• Pemberton

The following table shows the actual Real Estate Board of Greater Vancouver (REBGV) total MLS residential sales figures for each month in 2010 along with the 2011 sales figures.

2010-2011 REBGV – Total MLS Residential Sales for Greater Vancouver:

The Real Estate Board of Greater Vancouver residential average home sale price for December 2011 was $1,064,249 for detached properties, $511,948 for attached properties and $443,652 for apartment properties.

November 2011 figures were $1,134,936 for detached properties in Greater Vancouver, $565,168 for attached properties and $431,808 for apartment properties.

October 2011 figures were $1,162,349 for detached properties in Greater Vancouver, $571,425 for attached properties and $446,296 for apartment properties.

September 2011 figures were $1,104,896 for detached properties in Greater Vancouver, $573,259 for attached properties and $455,342 for apartment properties.

The overall benchmark price for a typical residential home across the Greater Vancouver region dropped slightly to $621,674 in December 2011 from $622,087 in November 2011.

Over the past 12 months, the REBGV MLSLink® Housing Price Index (HPI) benchmark price reveals that the price for all residential properties in the Greater Vancouver region has increased by an average of +7.6% to $621,674 in December 2011 from $577,808 a year ago in December 2010.

The REBGV Housing Price Index benchmark prices are a more accurate and reliable indicator of housing prices in Greater Vancouver compared to looking at average prices.

In their January 4, 2012 news release, the Real Estate Board of Greater Vancouver stated:

Sales of detached properties in December 2011 reached 630, a decrease of 18.1 per cent from the 769 detached sales re- corded in December 2010, and a 30.2 per cent decrease from the 902 units sold in December 2009. The benchmark price for detached properties increased 11.2 per cent from December 2010 to $887,471.

Sales of apartment properties reached 774 in December 2011, a decline of 4.6 per cent compared to the 811 sales in December 2010, and a decrease of 32.9 per cent compared to the 1,154 sales in December 2009.The benchmark price of an apartment property increased 3.7 per cent from December 2010 to $401,396.

Attached property sales in December 2011 totaled 254, a decline of 20.4 per cent compared to the 319 sales in December 2010, and a 44.7 per cent decrease from the 459 attached properties sold in December 2009. The benchmark price of an attached unit increased 4.2 per cent between December 2010 and 2011 to $511,499.

The REBGV stated that a “balanced real estate market prevailed through much of 2011” in the Greater Vancouver region.

Rosario Setticasi, REBGV president added that, “Our market remained in a balanced state for most of the year, although higher levels of demand for detached properties in the region’s largest communities caused prices in certain areas to rise higher than others.”

Rental housing costs in Canada continued to rise in every province in 2011. Buoyed by ongoing strength in the Canadian economy and lower new rental market housing completions, Canada’s overall vacancy rate was pushed downward, putting increased pressure on rental prices.

The overall average rent for a two-bedroom unit across Canada’s 35 major city centers (CMA’s) increased by 2.2% to $883 in October 2011 from $860 in October 2010, according to the latest report released by Canada Mortgage and Housing Corporation (CMHC) on December 13, 2011.

Rental housing prices in any given region are affected by wide range of influences but the primary variable is economic. While demographic and social influences play a role, job availability, mortgage affordability and geographic demand have a direct impact on rental housing costs.

“Demand for rental condominium apartments remained strong, with the vacancy rate for such units falling in most of Canada’s largest urban centres, including Toronto, Montreal and Vancouver,” said Mathieu Laberge, Deputy Chief Economist at CMHC’s Market Analysis Centre.

Provincially, British Columbia has the highest average monthly rental rate for a 2-bedroom apartment in Canada in October 2011 at $1,050, with Quebec having the lowest at $684.

Those looking to rent a 2-bedroom apartment in Canada in October 2011 would have to pay an average monthly rent of $701 in Newfoundland and Labrador, $745 in Prince Edward Island, $882 in Nova Scotia, $687 in New Brunswick, $684 in Quebec, $1002 in Ontario, $850 in Manitoba, $913 in Saskatchewan, $1044 in Alberta and $1,050 in British Columbia.

Canadian Average 2-Bedroom Rental Cost CMHC – October 2011 vs. 2010:

A closer look at average 2-bedroom rental rate figures in 2011 and 2010 reveals rental costs have progressively risen over the past two years across every province in Canada.

Canadian Average Monthly 2-Bedroom Rental Cost CMHC – 2011 and 2010:

The highest monthly rental rate increase in Canada for an average 2-bedroom apartment over the past year as of October 2011 was a +5.0% increase in Newfoundland and Labrador with the lowest increase occurring in Alberta were rental rates increased only +1.3%.

On a provincial basis as of October 2011, average 2-bedroom rental rates in Canada increased by +5.0% in Newfoundland and Labrador, +2.2% in Prince Edward Island, +1.7% in Nova Scotia, +2.2% in New Brunswick, +2.6% in Quebec, +1.8% in Ontario, + 3.2% in Manitoba, +4.0% in Saskatchewan, +1.3% in Alberta and +2.2% in British Columbia.

Canadian Provincial Rental Rate Summary – October 2011:

• Newfounland and Labrador – Provincial Average Rental Rate of $701 in October 2011 (up +5.0%) compared to $668 in October 2010.
• Prince Edward Island – Provincial Average Rental Rate of $745 in October 2011 (up +2.2%) compared to $719 in October 2010.
• Nova Scotia – Provincial Average Rental Rate of $882 in October 2011 (up +1.7%) compared to $851 in October 2010.
• New Brunswick – Provincial Average Rental Rate of $687 in October 2011 (up +2.2%) compared to $668 in October 2010.
• Quebec – Provincial Average Rental Rate of $684 in October 2011 (up +2.6%) compared to $666 in October 2010.
• Ontario – Provincial Average Rental Rate of $1002 in October 2011 (up +1.8%) compared to $980 in October 2010.
• Manitoba – Provincial Average Rental Rate of $850 in October 2011 (up +3.2%) compared to $815 in October 2010.
• Saskatchewan – Provincial Average Rental Rate of $913 in October 2011 (up +4.0%) compared to $872 in October 2010.
• Alberta – Provincial Average Rental Rate of $1044 in October 2011 (up +1.3%) compared to $1036 in October 2010.
• British Columbia – Provincial Average Rental Rate of $1050 in October 2011 (up +2.2%) compared to $1019 in October 2010.

The CMHC Spring Rental Market Survey found that overall, the average rent for two-bedroom apartments in existing structures across Canada’s 35 major centres increased 2.2% between October 2010 and October 2011, slightly lower than the 2.4% that was observed between October 2009 and October 2010.

A rental unit is considered available by the CMHC survey if the unit is vacant (physically unoccupied and ready for immediate rental), or if the existing tenant has given or received notice to move out and a new tenant has not signed a lease.

Vacancy rates across Canada continued to decrease in 2011 as demand and prices for rental accommodation climbed steadily over the past year. The latest report released by Canada Mortgage and Housing Corporation (CMHC) indicates that rental vacancy rates across Canada’s 35 major city centers (CMA’s) decreased to 2.2% in October 2011 from 2.5% in April 2011 and 2.6% a year ago in October 2010.

“Modestly higher levels of employment among persons aged 15 to 24 likely increased household formation among young adults, thereby increasing rental housing demand. This, combined with the supply of newly constructed rental apartments moving slightly lower, pushed Canada’s vacancy rate downward, said Mathieu Laberge, Deputy Chief Economist at CMHC’s Market Analysis Centre.

“Demand for rental condominium apartments remained strong, with the vacancy rate for such units falling in most of Canada’s largest urban centres, including Toronto, Montreal and Vancouver.”

Rental vacancy rates in October 2011 ranged across the provinces with the Canada’s lowest vacancy rates being found in Manitoba at 1.0%, Newfoundland and Labrador at 1.3%, Saskatchewan at 1.9%, Ontario at 2.2%, British Columbia at 2.4%, Quebec at 2.6%, Nova Scotia at 2.7%, Prince Edward Island at 2.9%, Alberta at 3.4% and New Brunswick with the highest vacancy rates in the country at 4.8%.

A closer look at Provincial vacancy rate figures in 2011 reveals that between April 2011 and October 2011, Prince Edward Islands Vacancy rate dropped dramatically over that period, down -1.6% while New Brunswick and Manitoba tied for having the highest increase at +0.3% over the same timeframe.

Canadian Provincial Rental Vacancy Rates CMHC – Oct 2011 vs. Apr 2011:

A look at Canadian vacancy rates over the past year shows that between October 2011 and October 2010, the biggest drop in Provincial vacancy rates over that period was in Alberta at -1.2% while the biggest increase was in Prince Edward Island at +0.7%.

Canadian Provincial Rental Vacancy Rates CMHC – 2011 vs. 2010:

Over the past year, vacancy rates have fallen in six provinces while increases have occurred in four others. As of October 2011, Nova Scotia saw rental vacancy rates decrease by -0.2%, Quebec saw rates go down -0.1%, Ontario -0.7%, Saskatchewan down -0.6%, Alberta down -1.2% and BC vacancy rates were down -0.3%.

From October 2011, Newfoundland and Labrador saw vacancy rates rise by +0.3% over the past year, Prince Edward Island saw rates rise +0.7%, New Brunswick rose +0.3% while Manitoba rose +0.1%.

Canadian Provincial Vacancy Rate Summary – October 2011:

• Newfounland and Labrador – Provincial Rental Vacancy Rate of 1.3% in October 2011 (up +0.3%) compared to 1.0% in October 2010.
• Prince Edward Island – Provincial Rental Vacancy Rate of 2.9% in October 2011 (up +0.7%) compared to 2.2% in October 2010.
• Nova Scotia – Provincial Rental Vacancy Rate of 2.7% in October 2011 (down -0.2%) compared to 2.9% in October 2010.
• New Brunswick – Provincial Rental Vacancy Rate of 4.8% in October 2011 (up -0.3%) compared to 4.5% in October 2010.
• Quebec – Provincial Rental Vacancy Rate of 2.6% in October 2011 (down -0.1%) compared to 2.7% in October 2010.
• Ontario – Provincial Rental Vacancy Rate of 2.2% in October 2011 (down -0.7%) compared to 2.9% in October 2010.
• Manitoba – Provincial Rental Vacancy Rate of 1.0% in October 2011 (up -0.1%) compared to 0.9% in October 2010.
• Saskatchewan – Provincial Rental Vacancy Rate of 1.9% in October 2011 (down -0.6%) compared to 2.5% in October 2010.
• Alberta – Provincial Rental Vacancy Rate of 3.4% in October 2011 (down -1.2%) compared to 4.6% in October 2010.
• British Columbia – Provincial Rental Vacancy Rate of 2.4% in October 2011 (down -0.3%) compared to 2.7% in October 2010.

The CMHC Fall 2011 Rental Market Survey also found that the rental apartment availability rate in Canada’s 35 major city centers (CMA’s) stood at 3.2% in October 2011, down from 3.8% a year ago in October 2010. A rental unit is considered available by the CMHC survey if the unit is vacant (physically unoccupied and ready for immediate rental), or if the existing tenant has given or received notice to move out and a new tenant has not signed a lease.