A total of 12,560 homes were sold across the province in March, up 38% year-over-year, according to British Columbia Real Estate Association data released April 15.

This figure shatters the previous record, which was set in May 2007 when 11,683 units were sold in BC.

“Housing demand has never been stronger in the province,” said BCREA chief economist Cameron Muir. “Most large population centres of the province are now experiencing record levels of housing demand.”

Muir credits strong employment growth, increasing wages and growing inter-provincial migration into B.C. for the increase.

Demand is so high, inventory levels are now a decade-lows in some areas across the province.

In Vancouver alone, sales increased 28.3% to 5,301 units, compared with 4,132 units last year. The benchmark price increased 22.6% to $1,093,267, compared with $891,652 last year.

“Supply [in Vancouver] simply can’t keep up with demand, be it domestic or foreign, and the sales-to-new listings ratio remains a sky-high 86%,” said BMO Financial Group senior economist Robert Kavcic.

“In other words, almost every new listing is getting absorbed within the month.”

Kavcic points out that even condo prices—up 19% year-over-year—are increasing at a rate similar to those for detached homes.

Across Canada, home sales increased 12.2% in the 12 months to March and prices were up 15.7%. This growth is due almost entirely to the market strength in Toronto, where prices increased 12.1% and sales grew 15.5%, and Vancouver.

“With supply in the two hot markets extremely tight, prices are likely to push even higher through the always-important spring selling season,” Kavcic said.

“The question is, will policymakers in B.C. and Ontario do anything to quell the fires?”

Kavcic said the data from these two cities is making up for losses in centres in oil-dependent Alberta, most notably Calgary, where home sales fell 11.7%. That city was the only one in Canada to see a drop in prices over the period, although the decrease was small (down 0.5%).

Teranet also released its Home Price Index April 15. This measure showed price increases of 17.3% over the year in Vancouver and 7% across the country. Teranet uses statistics compiled from public land registries using a repeat-sales methodology; this means it looks at sales of homes that have been sold at least twice since 1990.

BC Real Estate Sales Break Another Record as Demand Soars by Emma Crawford Hampel | Business in Vancouver