Home sales take enormous hit

B.C. real-estate prices dropped almost nine per cent from January 2008

The economic downturn delivered an enormous hit to B.C.'s housing market as the year began, figures released yesterday show.

Residential sales volume across the province tumbled 61.2 per cent to $873 million in January from the same month a year earlier, the B.C. Real Estate Association said.

B.C.'s average residential price dropped 8.9 per cent to $412,934 last month from a year ago.

And residential unit sales plunged 57.4 per cent in the same period, the association said.

"Home sales were sluggish in January, reflecting an overall malaise in consumer confidence and a weakening provincial economy," BCREA chief economist Cameron Muir said.

"Reports of an increasing number of consumers shopping for a home have yet to materialize in the sales statistics.

"The large selection of homes for sale in January likely reduced any sense of urgency for potential homebuyers to commit to a purchase."

Improving affordability triggered by lower mortgage rates and home prices should boost sales activity in the spring, the association said.

In Greater Vancouver, the average residential price fell 8.8 per cent year over year to $536,162.

Sales dollar volumes in Greater Vancouver fell 62.2 per cent year over year, while unit sales dropped 58.5 per cent during the same period, the association said.

In Victoria, year-over-year dollar volumes dropped 52.9 per cent and unit sales fell 44.7 per cent.

The average residential price in Victoria dropped 14.7 per cent to $431,312. The average residential price in Powell River posted the province's greatest drop, falling 23.4 per cent to $190,847.