While the Canadian economic “growth” has been trending down over the last 5 months, the weakness is very much sector specific to the energy producing regions of Canada, specifically oil, gas and mining. The BC economy is not so energy dependent and has actually grown a modest 2 to 2.5 per cent in 2015. BC retail sales are up a healthy 8.3 per cent over this time last year.
Residential sales listed on MLS in BC show we experienced the second strongest June on record. Province wide, sales are up 25 per cent over last year which is well enough. In Kamloops, however, sales are up more than 41 per cent!
While demand is higher, the numbers of listings continues to decline. The inventory of homes for sale fell 4.5 per cent in June.
“A stable inventory combined with rising consumer demand has created relatively balanced conditions in the Kamloops housing market,” notes BCREA in their June newsletter, “with home price rising roughly in line with overall inflation. As a result, the average MLS® residential price is expected to increase 2.8 per cent to a record $327,000 this year.”