May 14, 2010
Just as the summer hits and temperatures begin to rise, it seems like sales are cooling off in BC. Sales dropped 4% between March and April, but were still up from April 2009 by 21%. But, much to the chagrin of purchasers, prices didn’t follow suit.
So why have sales fallen off? The CBC cites rising interest rates and the (likely) inflated housing prices in Vancouver as the primary causal factors. After all, prices have risen a lot!
The average home price for sales jumped 17 per cent to $507,616 in the first four months of 2010 as a total of 26,669 residential properties were sold. CBC News
With prices so high, it’s no wonder sales are cooling down! Compound that with the fact that interest rates are rising and you’ve got the recipe for lower sales– and that’s what happened. Cause and effect. Aristotle would be proud.