More than half of Canada’s population (57%) is reportedly unprepared to handle their ongoing financial obligations in the event of an emergency and don’t have any rainy day savings set aside to deal with it, according to the most recent 2011 RBC Canadian Consumer Outlook Index (CCO) survey.

About three-in-ten Canadians (30%) also reported that they have had to dip into their savings to help pay for every day expenses.

People living in Quebec, British Columbia, and Ontario were more financially unprepared for emergencies than the country-wide average of 57% of Canadians in the 3rd quarter of 2011. Approximately 60% of respondents in Quebec, 58% of respondents in BC and 58% of respondents in Ontario stated that they do not have any money set aside as a rainy day fund and are not financially prepared to be able to handle an emergency.

Canadians Financially Unprepared for Emergency – by Region:

The survey found that a majority of Canadians are worried about their present financial position and the current economic conditions they face.

As a result approximately 54% of Canadians have delayed the timing of major purchases such as buying a car, major household appliances or vacation spending and almost half (47%) expect that their family will spend less on such purchases in the upcoming year.

Consumers in British Columbians and Ontario (58%) delayed making a major purchase as a result of current economic conditions more than any other region in Canada.

Consumers Delay Timing of Major Purchases in Canada – by Region:

The national average of Canadians worried about losing their jobs remained about the same as the previous quarter with 22% of Canadians worried about someone in their household losing their job or being laid off, as of September 2011.

The Atlantic region had 18% of respondents worried about losing jobs, Quebec was at 20%, Ontario accounting for the highest at 26%, Saskatchewan and Manitoba the lowest at 11%, Alberta at 19%, and British Columbia recording the second highest at 23%.

The RBC CCO survey found that job anxiety levels were trending highest in British Columbia, increasing by +5% over the previous survey with 23% of British Columbia respondents now worried about job loss or layoffs.

“The reinstatement of the old PST and subsequent uncertainty could weigh on the pace of business investment and job creation in the province,” noted Craig Wright, Senior Vice President and Chief Economist, RBC in a CCO press release about British Columbia.

Job Anxiety Levels Increase Most in British Columbia – September 2011:

The future looks less than rosy for a majority of Canadians (74%), as only 26% believe that Canada’s economy will improve over the next year heading into 2012.

The RBC CCO found that people are getting more concerned and have tempered their outlook for Canada’s economy going forward next year. Four-in-ten Canadian’s (40%) in September 2011 anticipating the economy will worsen, up +18% from the same sentiments expressed in June 2011. Only 26% of respondents indicated that Canada’s economy might improve over the next year, down -16% from the previous quarterly RBC survey.

Canadians Anticipate Worsening Economy Next Year:

While the September 2011 RBC survey found that almost one-third (32%) of Canadians think that their personal financial situation will improve over the next year, this is down by -7.0% from the previous quarter.

In fact, the current survey found that Canadians in every region of Canada have reduced their expectations that their personal financial situation will improve over the next year.

Canadians Reduce Outlook of Personal Financial Situation – September 2011:

Canadians are now very focused on discovering ways to manage their finances with 33% planning to reduce their debt, 30% intending to spend less, 21% expecting to save or invest more, and 21% planning to take action with all of the above.

Canadians Focus on Managing Finances and Reducing Debt – by Region:

“Helping Canadians find ways to manage their debts while building their savings is where financial planning advice can really make a difference,” said Ashif Ratanshi, Head of Branch Investments, Deposits and Direct Investing at RBC Royal Bank. “Achieving the right balance is key – being able to set aside even a small amount of money each month can help Canadians achieve their future goals.”

The current overall RBC CCO Index came in at 70 points in September 2011 survey, down 24 points from last quarter in the June 2011 report, as measured against its baseline of 100 established in November 2009.

“The drop in the RBC Canadian Consumer Outlook Index reflects ongoing global economic uncertainty, showing that strong Canadian economic fundamentals insulate us but do not make us immune to the turmoil around the globe,” noted Craig Wright, Senior Vice President and Chief Economist, RBC. “Given the uncertainty, the drop in the index was not unexpected, though it was disappointing.”

The “ongoing global economic uncertainty” has not damaged the strong Canadian economic fundamentals like other parts of the world, but Canada certainly is “not immune to the turmoil around the world,” noted Craig Wright, Senior Vice President and Chief Economist at RBC, in a CCO press release issued on October 26, 2011.

The RBC COO survey is Canada’s most comprehensive consumer assessment of the economy, personal financial situation, and economic and purchasing expectations.

Owning a home in British Columbia continues to be an expensive proposition. The BC housing market remains the least affordable in Canada, mainly because of sky-high home prices in the Vancouver real estate market, according to a new report released today by RBC.

The latest 2011 Housing Trends and Affordability Report issued by RBC Economics, finds that affordability measures for homes across Canada remain reasonable, with British Columbia being a notable exception.

“Housing affordability levels are quite good in most parts of Canada and will pose little threat to overall housing demand,” said Craig Wright, senior vice-president and chief economist, RBC. “The Vancouver area market continues to be a major exception, with sky-high property values in upscale neighbourhoods making it both extremely unaffordable and the most at risk of a downward correction.”

The RBC report measures housing affordability by creating a benchmark index of the proportion of owners pre-tax household income that is needed to service the costs of owning a home at market values across Canada.

According to the RBC Housing Affordability Measure, the higher the reading the less affordable it becomes to own a home. For example, an affordability reading of 50% means that homeownership costs, including mortgage payments, utilities and property taxes, take up 50% of a typical household’s monthly pre-tax income.

In their November 25, 2011 Housing Trends and Affordability Report, RBC stated:

RBC’s housing affordability measure for the benchmark detached bungalow in Canada’s largest cities is as follows: Vancouver 90.6 per cent (down 1.5 percentage points from the previous quarter), Toronto 52.1 per cent (up 0.1 percentage points), Montreal 40.9 per cent (down 1.3 percentage points), Ottawa 40.8 per cent (down 0.6 percentage points), Calgary 37.6 per cent (up 0.5 percentage points) and Edmonton 33.2 per cent (down 0.6 percentage points).

According to the 2011 RBC Housing Trends and Affordability Report, homeownership costs, including mortgage payments, utilities, and property taxes, take up 90.6% of a typical Vancouver household’s monthly pre-tax income. This wildly unaffordable figure is the highest of any city in Canada.

“Overall, Vancouver remains a wildly unaffordable market. At current market prices, more than 94 per cent of a typical household’s income would be needed to cover homeownership costs for a two-storey home and this figure is almost as high for a detached bungalow, at nearly 91 per cent,” said Robert Hogue, senior economist, RBC. “Extremely unaffordable housing appears to be driving local buyers away – Vancouver resales have dropped more than 16 per cent since winter.”

Earlier this year, Vancouver’s red hot real estate market had a disproportionate effect on Canada’s entire national housing market affordability totals. According to RBC “The affordability deterioration in the first and second quarters reflected in large part significant increases in homeownership costs in Metro Vancouver.”

In the third quarter of 2011, Vancouver’s high property values continued to impact affordability for local homebuyers, however moderation of prices and a slight easing of mortgage rates made it slightly more affordable to own a Vancouver home.

“B.C. homebuyers benefitted from a small mortgage rate decline in the third quarter. This, coupled with softer prices for two-storey homes and condominiums, contributed to making housing slightly more affordable in the province in the latest period,” added Hogue. “Even so, for prospective buyers on the hunt for a home, the ownership bar seems incredibly high.”

While a recent combination of moderate declines in mortgage rates and softening of some housing types has made it slightly more affordable to own a home in BC, the report from RBC confirms that British Columbia is still the province with the poorest aggregate housing affordability levels in Canada.

Following six months of fairly even activity, the latest figures from Statistics Canada reveal a substantial drop in construction intentions across British Columbia in September 2011. BC municipalities saw steep declines in the value of building permits issued across the province.

BC contractors took out $663.9 million worth of building permits in September 2011, down -21.2% from $843.0 million in August 2011 and down -38.7% from the same month a year ago in September 2010. Construction intentions declined across all sectors of the British Columbia construction industry including the residential, non-residential, commercial and industrial.

The British Columbia residential sector saw a -16.0% drop in building permit values for September 2011, down to $480.1 million from $571.3 million in August 2011 and down -36.0% from the same month last year in September 2010.

The non-residential construction sector in BC sector suffered a -32.4% decline in building permit values to $183.8 million in September 2011, from $271.7 million in August 2011, which is also a decline of -44.7% from year ago figures from September 2010.

While both the residential and non-residential categories saw building permit declines in September, the majority of the loss in BC came from the non-residential sector which saw its monthly figures almost cut in half. Non-residential building permit values in British Columbia dropped from $271.7 million in August 2011 to $183.8 million in September 2011, down -32.4%, a decline of -$87.9 million.

British Columbia – Total Building Permit Values – September 2011:

In a November 4th, 2011 commentary on BC building permits Central 1 Credit Union stated:

In the residential sector, permit volume declined on less activity in both the single-detached and apartment sectors. Seasonally adjusted single-detached home sales volumes fell 2.5%, marking a third consecutive monthly decline, while apartment volumes pulled back 18%. Looking past the monthly gyrations, residential building intentions have shown signs of slowing in recent months. While apartment volumes continue to creep higher, permit volumes for single- detached units have turned over.

In the non-residential sector, a number of key trends persist, despite substantial declines in both the private and public sectors in September. Private sec- tor building intentions have continued to rise in 2011, extending the gains observed last year. While growth has slowed, commercial building intentions continue to trend higher. Industrial building intentions have surged in the last year and are above pre-recession levels, but volumes are small relative to commercial activity. Meanwhile, the end of fiscal stimulus and budget tightening has led to a significant drag on public-sector building permit volumes since the beginning of 2011. Through September, year-to-date non-residential building intentions were up 26% in the private sector, which offset a 25% decline in the institutional and government building permits.

Brian Yu, Chief Economist from Central 1 Credit Union said, “This slowdown partly reflects the current uncertainty surrounding the transition from the HST back to a PST/GST system

A closer look at individual British Columbia CMA’s (Census Metropolitan Area) reveals that the Abbotsford/Mission CMA had one the largest decreases in building permit applications in British Columbia in September 2011 with a -31.7% decline. The Vancouver CMA saw a -17.8% decrease in September while the Victoria CMA was down -13.4%.

Meanwhile the Kelowna CMA countered the trend by posted a significant gain in September building permit values rising by +45.7% to $26.2 million from $18.0 million in August 2011.

British Columbia CMA – Total Building Permit Values – September 2011:

“Although August’s decline was substantial, it may not reflect a trend. Building permit volumes are highly volatile when compared on a month-to-month basis due to the occurrence of larger scale residential multi-family projects and non-residential projects that do not exhibit strong seasonal patterns. Total permit volumes remained within the range observed since mid-2009,” added Yu.

Evaluating BC municipal building permit values on a monthly basis provides an early indication of what to expect for upcoming construction activity in British Columbia.

News of easing MLS home sales over the past several months in lower mainland British Columbia real estate markets has not slowed BC homebuilder’s new home construction intentions according to the latest building permit figures released by Statistics Canada.

Total British Columbia building permit values have increased in August 2011 by +3.4% to $842.6 million from $815 million in July 2011. This comes as Canadian national building permit totals fell by -10.4% in the same month on substantial drops in Ontario construction sector and an overall softness in eastern provinces.

British Columbia’s residential sector surged ahead by +14.3% in August 2011, largely on the strength of rising multiple-family activity as single-detached permit volumes continued to edge down in the province.

Meanwhile, non-residential building permits in British Columbia pulled back -14.0% in August 2011, mainly on a -31.0% drop in commercial permits activity. But private-sector building permit intentions continue to trend higher in BC. In fact the strength of industrial structure intentions has approached the peak trend levels that the construction industry observed in the mid-2000s.

“We aren’t concerned about the monthly declines in non-residential permits; the August drop-off in commercial permits following a substantial jump in July was the main reason behind the decline,” said Keith Sashaw, president of the Vancouver Regional Construction Association.

British Columbia – Total Building Permit Values – August 2011:

In an October 7th, 2011 commentary on BC building permits Central 1 Credit stated:

While residential permits rose 14% from July, the gains primarily reflected an increase in multiple-family activity, as single-detached permit volumes edged down. Volumes in the volatile apartment sector rebounded 37% following a similar percentage point decline observed the previous month.

Looking past the monthly gyrations, residential building intentions have gradually edged higher, but gains could slow as some home buyers, particularly those of new single-detached homes, delay purchases until after the transition back to a PST/GST system scheduled for 2013.

An October 6, 2011 news release from the Vancouver Regional Construction Association stated:

Building permit values in the Lower Mainland-Southwest region held steady in August and are up year-to-date, according to Vancouver Regional Construction Association’s analysis of today’s Statistics Canada building permit report.

Total building permit values in the region edged up four per cent to $600.8 million in August from $577.7 million in July 2011. Non-residential permit values fell back 29 per cent to $163 million from $229.3 million during the same period, while the value of residential permits rose 26 per cent to $437.9 million from $348.4 million.

“Building permit values in the Lower Mainland-Southwest region held fairly steady in August compared to July,” says Keith Sashaw, president of the Vancouver Regional Construction Association.

“Overall, building permit values in the Lower Mainland-Southwest region were up eight per cent this year compared to last year,” says Sashaw. “This reinforces confidence in the local economy and the overall growth underway.”

Total municipal building permit values Increased by +29.8% in the Abbotsford/Mission census metropolitan area (CMA) in August 2011 lead by a gain in non-residential building permits mainly in the commercial sector.

“We are hopeful permits will continue to come in higher than in 2010 thanks to the recent surge in commercial permits,” says Sashaw. “It would be excellent to see two consecutive annual gains in Abbotsford.”

The Kelowna CMA saw total municipal building permits decline by -22.5% in August 2011, while the Vancouver CMA saw a decline of -4.9% in permit values in August and the Victoria CMA saw a decline of -3.7% in August as well.

British Columbia CMA – Total Building Permit Values – August 2011:

“While Metro Vancouver permit activity slipped in August, the commercial real estate sector is coming alive with more investment in office towers in downtown Vancouver,” says Sashaw. “These projects have yet to appear in building permits.”

Evaluating BC municipal building permit values on a monthly basis provides an early indication of what to expect for upcoming construction activity in British Columbia.

As residential MLS home sales and prices in the province of British Columbia moderated in August 2011, there was also a surprising reversal of a trend that started at the beginning of this year in the BC real estate market. Since January, every month this year saw the total number of active residential MLS listings in Province grow in numbers over the previous month, that is until now.

For the first time this year, the total number of active MLS listings in the Province actually declined in August 2011. The British Columbia Real Estate Association (BCREA) reported that there were 55,933 active residential MLS listings on the provincial Multiple Listing Service (MLS) in August 2011, down -1.6% from the 56,845 active listings in July 2011.

The decrease to 55,933 active listings in August from the 56,845 active listing in July represents a decline of -912 total active listings in the Province. While the unit decrease may not seem significant, the fact of the matter is that prior to August 2011 the total number of British Columbia active MLS listings have followed a consistent upward trend with successive month-over-month increases every month this year.

Total active MLS listings in British Columbia reached a 2011 peak of 56,845 in July this year. This was easily surpassed by the 59,232 total active MLS residential listings that were on the market in June 2010, which was the high point for last year.

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.

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

• BC Northern Real Estate – BCNREB August 2011 active MLS listings down -1.34% (-45 units) to 3,321 total.
• Chilliwack Real Estate – CADREB August 2011 active MLS listings up +0.16% (+3 units) to 1,907 total.
• Fraser Valley Real Estate – FVREB August 2011 active MLS listings up +0.21% (+18 units) to 8,435 total.
• Greater Vancouver Real Estate – REBGV August 2011 active MLS listings down -2.52% (-411 units) to 15,896 total.
• Kamloops Real Estate – August 2011 active MLS listings down -2.07% (-49 units) to 2,320 total.
• Kootenay Real Estate – KREB August 2011 active MLS listings down -0.39% (-14 units) to 3,595 total.
• Okanagan Mainline Real Estate – OMREB August 2011 active MLS listings down -1.44% (-101 units) to 6,900 total.
• Powell River Real Estate – PRSCREB August 2011 active MLS listings down -1.48% (-4 units) to 267 total.
• South Okanagan Real Estate – SOREB August 2011 active MLS listings up +0.53% (+12 unit) to 2,288 total.
• Vancouver Island Real Estate – VIREB August 2011 active MLS listings down -2.35% (-160 units) to 6,655 total.
• Victoria Real Estate – VREB August 2011 active MLS listings down -3.73% (-156 units) to 4,022 total.

Total active MLS listings declined in a majority of the eleven real estate boards across British Columbia in August 2011. The most notable volume decrease was in Greater Vancouver where total listings declined by -2.52% in August, a decrease of -411 listings from the previous month. Other relatively significant decreases occurred in the Okanagan Mainline, Vancouver Island and Victoria boards.

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

Cameron Muir, BCREA Chief Economist said, “Total active listings in the province remained elevated in August.”

According to the BCREA, there were a total of 55,933 active residential MLS listings in British Columbia in August 2011; this was an increase of 1.0% over the same month last year when there were 55,357 active listings in August 2010.

The question now for the BC real estate market is, will the August drop in total active listings on the provincial MLS system signal the start of a declining listing trend and if so, what implications will that have on sales and pricing going forward?

August saw actual British Columbia residential MLS home sales do something we haven’t seen yet this year; they declined for a second consecutive month. While total monthly residential MLS home sales were down by -0.4% to 6,504 sales in August 2011, provincial home prices also continued to soften.

The British Columbia Real Estate Association (BCREA) reported that the average MLS residential home price in BC decreased by -0.17% to $539,953 in August 2011 from last month. This follows a -5.41% decrease to $540,877 in July 2011, a -4.19% decrease to $571,837 in June 2011 and a -0.24% decease to $596,872 in May 2011.

British Columbia’s overall average residential MLS home sale prices have now declined for four consecutive months.

However, the British Columbia average residential home sale price of $539,953 in August 2011 represents a substantial 10.7% price increase over year ago figures when the average MLS residential home price in BC was $487,804 in August 2010.

2010-2011 BCREA – Average MLS Residential Home Prices:

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.

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

• BC Northern Real Estate – BCNREB August 2011 average home prices decline -3.63% (-$8,222) to $218,137
• Chilliwack Real Estate – CADREB August 2011 average home prices decline -1.83% (-$5,648) to $302,433
• Fraser Valley Real Estate – FVREB August 2011 average home prices increase +0.76% (+$3,819) to $507,750
• Greater Vancouver Real Estate – REBGV August 2011 average home prices increase +2.22% (+$16,872) to $778,545
• Kamloops Real Estate – August 2011 average home prices increase +5.21% (+$14,945) to $301,950
• Kootenay Real Estate – KREB August 2011 average home prices decline -2.40% (-$7,028) to $285,871
• Okanagan Mainline Real Estate – OMREB August 2011 average home prices decline -6.20% (-25,280) to $382,755
• Powell River Real Estate – PRSCREB August 2011 average home prices increase +6.62% (+16,113) to $259,552
• South Okanagan Real Estate – SOREB August 2011 average home prices decrease -2.74% (-8,657) to $306,765
• Vancouver Island Real Estate – VIREB August 2011 average home prices increase +4.39% (+14,002) to $332,832
• Victoria Real Estate – VREB August 2011 average home prices increase +14.90% (+69,579) to $536,631

In August 2011, the highest monthly percentage increase in average residential MLS home prices occurred within the Victoria (VREB) real estate board region with a +14.90% monthly gain. The Victoria (VREB) real estate board region also had the highest actual dollar value increase in average residential MLS home prices in August 2011 with a $69,579 increase over the previous month.

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

Cameron Muir, BCREA Chief Economist said, “Most regional markets exhibited buyer’s market conditions, meaning little upward pressure on home prices.”

According to the BCREA, total British Columbia residential home sales dollar volumes increased by 28.8% in August 2011 to $3,511,857 from the same month last year when the total sales volume was $2,726,822 in August of 2010.

For the first time this year, total British Columbia residential home sales declined for a second month in a row in August 2011. The Province has not seen actual monthly MLS sales figures (not seasonally adjusted) decline over two consecutive months this year, until now.

While BCREA Chief Economist, Cameron Muir said, “BC home sales edged up one per cent in August compared to July on a seasonally adjusted basis,” actual figures released by the British Columbia Real Estate Association (BCREA) show that there were 6,504 residential property sales thru the provincial Multiple Listing Service (MLS) in August 2011, down -0.4% from the 6,533 units sold in July 2011.

This follows last months -17.3% drop in actual BC residential MLS sales to 6,533 units in July 2011 from the 7,904 units sold in June 2011. July’s monthly percentage sales drop was the largest seen this year.

A closer look at the actual BCREA sales figures shows that the 6,504 residential property sales in August 2011 was an increase of 16.4% over last year’s figures when there were 5,590 sales thru the British Columbia MLS system in August 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 – August 2011 – Sales Increase/Decrease (over previous month):

• BC Northern Real Estate – BCNREB August 2011 home sales +12.80% (+48 units) to 423 total.
• Chilliwack Real Estate – CADREB August 2011 home sales +7.82% (+14 units) to 193 total.
• Fraser Valley Real Estate – FVREB August 2011 home sales +2.56% (+32 units) to 1,282 total.
• Greater Vancouver Real Estate – REBGV August 2011 home sales -7.46% (-195 units) to 2,419 total.
• Kamloops Real Estate – August 2011 home sales +24.73% (+46 units) to 232 total.
• Kootenay Real Estate – KREB August 2011 home sales +3.87% (+7 units) to 188 total.
• Okanagan Mainline Real Estate – OMREB August 2011 home sales -13.24% (-63 units) to 413 total.
• Powell River Real Estate – PRSCREB August 2011 home sales -12.90% (-4 units) to 27 total.
• South Okanagan Real Estate – SOREB August 2011 home sales -7.95% (-12 units) to 139 total.
• Vancouver Island Real Estate – VIREB August 2011 home sales +13.19% (+72 units) to 618 total.
• Victoria Real Estate – VREB August 2011 home sales +4.82% (+24 units) to 522 total.

The total BC residential monthly MLS sales decrease of -0.4% to 6,504 units in August 2011 was heavily influenced by the monthly sales declines in Greater Vancouver (-195 units) and in the Okanagan Mainline (-63 units) real estate markets in August. While these two areas did not suffer the highest monthly percentage drops, they did have the highest monthly sales volume drops of all the BC real estate boards in August 2011.

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

The 2,419 units sold in Greater Vancouver along with the 1,282 units sold in the Fraser Valley resulted in combined total of 3,701 sales in August 2011 for the two regions, down -4.22% from the combined total of 3,864 sales these two real estate boards areas achieved in July 2011.

In August 2011 the 3,701 combined sales from the Greater Vancouver and Fraser Valley regions represented 56.9% of the total 6,504 residential homes sold in British Columbia on the MLS system, down from 59.1% in July 2011, 61.0% in June 2011 and 62.91% in May 2011.

In their September 14, 2011 news release, the British Columbia Real Estate Association stated:

Year-to-date, BC residential sales dollar volume increased 17.7 per cent to $31.7 billion, compared to the same period last year. Residential unit sales increased 2.6 per cent to 55,132 units, while the average MLS® residential price rose 14.7 per cent to $574,962 over the same period.

“Low mortgage interest rates continued to underpin housing demand in the province last month, said Cameron Muir, BCREA Chief Economist.

For only the second time this year, residential home sales in British Columbia declined from previous months sales figures. In fact, actual MLS home sales figures in July 2011 dropped by the largest monthly percentage decrease thus far this year, while total active listings across the province continued to increase hitting their highest level so far this year.

The brisk pace of BC real estate sales in the first quarter of 2011 resulted in a “pull forward” of sales as buyers rushed to make home purchases before new mortgage rules were introduced in Canada on March 18, 2011 and April 18, 2011. The second quarter of 2011 started at a slower pace, as purchasers appeared to “regroup” and come back with strong demand in the lower mainland creating a distinctive second ramp up in the market. Now, the BC real estate market has taken a pause and moved lower to start the third quarter of 2011.

The British Columbia Real Estate Association (BCREA) reported 6,533 residential property sales thru the provincial Multiple Listing Service (MLS) in July 2011.

Cameron Muir, BCREA Chief Economist said, “BC home sales edged down 4 per cent from June to July, on a seasonally adjusted basis.”

A closer look at the actual BCREA sales figures reveals that British Columbia residential property sales thru the MLS system declined by -17.3% to 6,533 units sold in July 2011 from 7,904 units sold in June 2011.

This July’s sales figures represent a 12.9% increase over last year’s monthly figures when there were 5,784 units sold in July 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 – July 2011 – Sales Increase/Decrease (over previous month):

• BC Northern Real Estate – BCNREB July 2011 home sales decrease -10.29% (-43 units) to 375 total
• Chilliwack Real Estate – CADREB July 2011 home sales decrease -22.17% (-51 units) to 179 total
• Fraser Valley Real Estate – FVREB July 2011 home sales decrease -17.11% (-258 units) to 1,250 total
• Greater Vancouver Real Estate – REBGV July 2011 home sales decrease -21.19% (-703 units) to 2,614 total
• Kamloops Real Estate – July 2011 home sales decrease -9.71% (-20 units) to 186 total
• Kootenay Real Estate – KREB July 2011 home sales decrease -21.98% (-51 units) to 181 total
• Okanagan Mainline Real Estate – OMREB July 2011 home sales decrease -4.61% (-23 units) to 476 total
• Powell River Real Estate – PRSCREB July 2011 home sales decrease -18.42% (-7 units) to 31 total
• South Okanagan Real Estate – SOREB July 2011 home sales increase +4.14% (+6 units) to 151 total
• Vancouver Island Real Estate – VIREB July 2011 home sales decrease -18.75% (-126 units) to 546 total
• Victoria Real Estate – VREB July 2011 home sales decrease -16.44% (-98 units) to 498 total

The total BC residential monthly MLS sales decrease of -17.35% to 6,533 units in July 2011 was heavily influenced by a -17.11% home sales decline in the Fraser Valley and a -21.19% decline in Greater Vancouver, the two largest real estate markets in British Columbia.

The 2,614 units sold in Greater Vancouver along with the 1,250 units sold in the Fraser Valley resulted in combined total of 3,864 sales in July 2011, down -19.9% from the combined total of 4,825 sales these two real estate boards achieved in June 2011. In July these two regions represented 59.1% of the total 6,533 residential units sold in British Columbia, down from 61.0% in June 2011 and 62.91% in May 2011.

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

“Less frenetic buying activity in Vancouver operated to pull total provincial sales lower,” said Cameron Muir, BCREA Chief Economist.

The reversal of monthly sales activity in July 2011 was also seen last year as the 5,784 sales in July 2010 was a -25.1% decrease over the previous month of June 2010 when there were 7,722 units sold in BC. While this can normally be attributed to a “summer slowdown”, the difference this year is that total provincial active listings have continued to increase in July 2011 versus taking a step back last year.

Total MLS residential active listings in British Columbia reached their peak for this year with 56,845 active MLS home listing across the province in July 2011, a 1.8% increase (+1,029 units) over the 55,816 active listings in June 2011.

Total BC active listings have followed a consistent upward trajectory this year with successive month-over-month increases over the past seven months in 2011.

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.

July 2011 – BCREA – Active Listings (over previous month):

• BC Northern Real Estate – BCNREB July 2011 active listings up +2.78% (+91 units) to 3,366 total
• Chilliwack Real Estate – CADREB July 2011 active listings up +4.16% (+76 units) to 1,904 total
• Fraser Valley Real Estate – FVREB July 2011 active listings up 3.04% (+248 units) to 8,417 total
• Greater Vancouver Real Estate– REBGV July 2011 active listings up +0.53% (+86 units) to 16,280 total
• Kamloops Real Estate – July 2011 active listings up +2.96% (+68 units) to 2,369 total
• Kootenay Real Estate – KREB July 2011 active listings up +4.88% (+168 units) to 3,609 total
• Okanagan Mainline Real Estate – OMREB July 2011 active listings up +1.05% (+73 units) to 7,001 total
• Powell River Real Estate – PRSCREB July 2011 active listings up +2.26% (+6 units) to 271 total
• South Okanagan Real Estate – SOREB July 2011 active listings up 0.04% (+1 unit) to 2,276 total
• Vancouver Island Real Estate – VIREB July 2011 active listings up +2.08% (+139 units) to 6,815 total
• Victoria Real Estate – VREB July 2011 active listings up +1.84% (+70 units) to 4,178 total

Total active listings increased in every real estate board across British Columbia in July 2011. The most notable increase in July 2011 was the 248 new listings in the Fraser Valley, a figure that was over 2.8x higher than the 86 new listings in the Greater Vancouver real estate market that has almost, double the total active listings.

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

British Columbia’s residential average MLS home sale price decreased by -5.41% to $540,877 in July 2011. This follows a -4.19% decrease to $571,837 in June 2011 and a -0.24% decease to $596,872 in May 2011

The British Columbia average residential home price of $540,877 in July 2011 represents a considerable 10.0% price increase over the past 12 months in BC compared to the $491,832 figure in July 2010.

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

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

• BC Northern Real Estate – BCNREB July 2011 average home prices decline -0.52% (-$1,184) to $226,359
• Chilliwack Real Estate – CADREB July 2011 average home prices decline -5.05% (-$16,308) to $308,081
• Fraser Valley Real Estate – FVREB July 2011 average home prices increase +0.12% (+$600) to $503,931
• Greater Vancouver Real Estate – REBGV July 2011 average home prices decline -5.83% (-$47,194) to $761,673
• Kamloops Real Estate – July 2011 average home prices decline -9.33% (-$29,549) to $287,005
• Kootenay Real Estate – KREB July 2011 average home prices increase +8.20% (+$22,189) to $292,899
• Okanagan Mainline Real Estate – OMREB July 2011 average home prices increase +7.05% (+$26,864) to $408,035
• Powell River Real Estate – PRSCREB July 2011 average home prices decline -2.37% (-$5,907) to $243,439
• South Okanagan Real Estate – SOREB July 2011 average home prices increase +1.13% (+$3,538) to $315,422
• Vancouver Island Real Estate – VIREB July 2011 average home prices decline -3.54% (-$11,707) to $318,830
• Victoria Real Estate – VREB July 2011 average home prices decline -7.95% (-$40,333) to $467,052

In July 2011, the largest percentage drop in residential average MLS home prices occurred within the Kamloops (KREB) real estate board region with a -9.33% decrease while the highest dollar value decrease in residential average home prices was a drop of -$47,194 in the Greater Vancouver (REBGV) region.

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

According to the BCREA, residential sales dollar volumes in British Columbia increased by 16.5% to $28.2 billion in July 2011 on a year to date basis compared to the same period last year, which saw a figure of $24.2 billion in 2010.

Residential unit sales volume from January to July 2011 increased by 1.0% to 48,628 units on a year to date basis from 48,127 over the same period in 2010.

“The silver lining in the recent global economic uncertainty is that mortgage rates have the potential to reach record lows in the coming weeks as investors flock into bond markets,” added Muir. “The increased affordability and added purchasing power from lower mortgage rates will help bolster housing demand.”

British Columbia’s overall provincial building permit values increased by a healthy 9.9% in June 2011 as the total value of building permits issued by BC municipalities rose to $885.4 million in June 2011 from $805.2 million in May 2011.

June’s gains were in addition to the 4.3% gain in May, making it the second strait month of increases for total British Columbia building permit values after a weak result in April 2010 when overall provincial values declined by 10.9%.

A substantial portion of the monthly BC building permit value increase came from a 32.6% jump to $604.9 million in residential sector permits in the province in June 2011 from $456 million in May 2011. This followed last months decline of 14.4% in the value of residential permits in BC.

By contrast, the province suffered a 19.7% drop in non-residential building permits across BC municipalities to $280.4 million in June 2011 from $349.2 million in May 2011.

British Columbia Total Building Permit Values – June 2011:

In an August 5th, 2011 commentary on BC building permits Central 1 Credit stated:

Through June, non-residential permit volumes were up 26% from 2010 on a year-to-date basis, largely re- flecting an uptrend in commercial building intentions. Meanwhile, permits for institutional and government projects were down 6.5%, reflecting the waning impacts of fiscal stimulus spending in the aftermath of the recession.

Large monthly swings in permit volumes are common which reflects the infrequency of large projects coming into production in both the residential and non-residential sectors.

An August 9, 2011 news release from the Vancouver Regional Construction Association stated:

Building permits in Metro Vancouver reached their second highest level since March’s high. Seasonally adjusted total building permits in Metro Vancouver surged 42 per cent to $526.9 million in June from $370.1 million in May, led by a 50 per cent increase in non-residential permits and a 40 per cent increase in residential permits. Non-residential permits were led by a 94 per cent climb in commercial permits to $93.8 million.

“Metro Vancouver’s commercial permit performance in June was above average,” says Keith Sashaw, President of the Vancouver Regional Construction Association. “This reinforces confidence in the local economy and the overall growth underway in Metro Vancouver’s private sector.”

Total municipal building permit values declined by 82.5% in the Abbotsford/Mission census metropolitan area (CMA) in June 2011 lead by a drop in commercial permits after a record increase last month.

“The drop in commercial permits and total building permits was to be expected after May’s record
gains,” says Keith Sashaw, president of the Vancouver Regional Construction Association referring to the Abbotsford figures. “We are still
seeing a moderate upward trend this year and June’s dip should not be a major concern, particularly
with residential permits at their second highest level this year.”


The Kelowna CMA saw total municipal building permits increase by an impressive +156.4% in June 2011, while the Vancouver CMA saw a +42.4% increase in total building permit values in June and the Victoria CMA saw a +16.7% increase in June as well.

British Columbia CMA – Total Building Permit Values – June 2011:

“The positive trends we are seeing in June’s regional building permit numbers, followed by July’s construction employment numbers, are encouraging for the industry,” says Sashaw. “We’re even seeing pre-recession highs for employment in the industry, demonstrating the contribution of construction to the regional economy.”

Evaluating BC municipal building permit values on a monthly basis provides an early indication of what to expect for upcoming construction activity in British Columbia.

British Columbia MLS residential home sales remained relatively flat and stable in June, holding onto a May rebound from the slight decrease in month-to-month BC homes sales in April. While this June’s sales figures were relatively unchanged from last month, some regions of the province experienced a decrease in sales activity.

The British Columbia Real Estate Association (BCREA) reported that residential property sales increased by 0.6% to 7,904 units in June 2011 from 7,857 units in May 2011. This also represented a 2.4% increase over the same month a year ago when there were 7,722 sales in June 2010.

This follows a significant ramp-up in first quarter of home sales in British Columbia in 2011. March saw BC home sales reach 8,600 units, a 34.16% increase from February’s 6,410 units. February saw a blistering 54.94% sales increase over January’s 4,137 units on an actual month-over-month basis according to BCREA figures.

“Home sales were relatively unchanged in June compared to last year,” said Cameron Muir, BCREA Chief Economist.

The 7,904 home sales in June 2011 maintains the high pace of sales in the province and replaces May as the 4th highest monthly sales figure in all of 2010 and 2011. Year to date sales dollar volume in 2011 is currently running approximately 15.5% ahead of last year.

The story for first quarter residential home sales in BC was a “pull forward” of sales in the first quarter of 2011 as buyers accelerated their purchases in anticipation of the new mortgage rules that were introduced on March 18, 2011 and April 18, 2011 in Canada. This resulted in a drop in sales in April as buyers rushed to beat the deadlines.

The total BC residential MLS sales increase of 0.6% to 7,904 units in June 2011 was achieved in spite of a monthly home sales decline of -3.32% in the Greater Vancouver and a -0.26% decline in the Fraser Valley real estate markets.

The 3,317 units sold in Greater Vancouver along with the 1,508 units sold in the Fraser Valley resulted in combined total of 4,825 sales in June 2011, down 2.4% from the combined total of 4,943 sales for these two regions in May 2011. In June these two regions represented 61.0% of the total 7,904 residential units sold in British Columbia, down from 62.91% in May 2011.

The following table shows the actual British Columbia Real Estate Association (BCREA) total MLS residential sales figures for each month in 2010 along with 2011 sales figures.

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

Every real estate board in British Columbia saw residential home sales increases in June 2011:

BCREA – June 2011 – Sales Increase (over previous month):

• BC Northern – BCNREB June 2011 home sales +7.18% (+28 units) to 418 total.
• Chilliwack – CADREB June 2011 home sales +16.16% (+32 units) to 230 total.
• Fraser Valley – FVREB June 2011 home sales -0.26% (-4 units) to 1,508 total.
• Greater Vancouver – REBGV June 2011 home sales -3.32% (-114 units) to 3,317 total.
• Kamloops – June 2011 home sales -10.43% (-24 units) to 206 total.
• Kootenay – KREB June 2011 home sales +38.92% (+65 units) to 232 total.
• Okanagan Mainline – OMREB June 2011 home sales +1.63% (+8 units) to 499 total.
• Powell River – PRSCREB June 2011 home sales +15.15% (+5 units) to 38 total.
• South Okanagan – SOREB June 2011 home sales +10.69% (+14 units) to 145 total.
• Vancouver Island – VIREB June 2011 home sales -2.04% (-14 units) to 672 total.
• Victoria – VREB June 2011 home sales +9.36% (+51 units) to 596 total.

British Columbia’s residential average MLS home sale price decreased by -4.19% to $571,837 in June 2011. This comes after a -0.24% decease to $596,872 in May 2011, a +0.70% increase to $598,308 in April 2011, a 1.12% increase to $594,157 in March 2011 and a 7.19% increase to $587,571, all over the previous month.

The British Columbia average residential home price of $571,837 in June 2011 represents a sizable 14.4% price increase over the past 12 months in BC compared to the $499,908 figure in June 2010.

Total MLS Residential Active Listings in British Columbia increased by 2.84% (+1,542 units) across the province in June 2011 to 55,816 actual active listings from the 54,274 in May 2011.

Most real estate boards in British Columbia saw total active listings increase in June 2011:

June 2011 – BCREA – Active Listings (over previous month):

• BC Northern – BCNREB June 2011 active listings +9.13% (+274 units) to 3,275 total.
• Chilliwack – CADREB June 2011 active listings -0.16% (-3 units) to 1,828 total.
• Fraser Valley – FVREB June 2011 active listings up -2.05% (-171 units) to 8,169 total.
• Greater Vancouver – REBGV June 2011 active listings +2.91% (+458 units) to 16,194 total.
• Kamloops – June 2011 active listings +5.12% (+112 units) to 2,301 total.
• Kootenay – KREB June 2011 active listings +10.22% (+319 units) to 3,441 total.
• Okanagan Mainline – OMREB June 2011 active listings +2.67% (+180 units) to 6,928 total.
• Powell River – PRSCREB June 2011 active listings +1.15% (+3 units) to 265 total.
• South Okanagan – SOREB June 2011 active listings +3.41% (+75 units) to 2,275 total.
• Vancouver Island – VIREB June 2011 active listings +1.54% (+101 units) to 6,676 total.
• Victoria – VREB June 2011 active listings +3.89% (+154 units) to 4,108 total.

According to the BCREA, residential sales dollar volumes in British Columbia increased by 15.5% to $24.6 billion in June 2011 on a year to date basis compared to the same period last year, which saw a figure of $21.4 billion in 2010.

Residential unit sales volume from January to June 2011 decreased by -0.6% to 42,095 units on a year to date basis from 42,343 over the same period in 2010.

“However, low mortgage interest rates and an overdue pick-up in BC employment growth are expected to provide some incentive to consumers over the summer months,” added Muir.