Rising rates cool B.C. real estate sales

Rising interest rates and falling demand are cooling B.C.'s  residential real estate market.Rising interest rates and falling demand are cooling B.C.’s residential real estate market. (CBC)

Higher home prices in B.C., coupled with rising interest rates, have taken the edge off the province’s housing market, but prices are still rising.

Figures released by the B.C. Real Estate Association on Friday show 8,385 properties changed hands in April, a four per cent decline, compared to the month before.

Association chief economist Cameron Muir said higher home prices, particularly in Vancouver, the Fraser Valley and Victoria, as well as recent mortgage interest rate hikes have cut overall housing demand.

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.

When compared to April, 2009, Multiple Listing Service sales were up 21 per cent in April, showing a long-term gain.

Source: CBC NEWS