Lack of housing forces prices up across B.C.

The British Columbia Real Estate Association says a lack of homes on the market means buyers are paying more for housing across the province.

The association has released figures for May showing 12,402 homes were sold in B.C. last month, down 7.9 per cent when compared with May last year.

Total listings also fell 11.1 per cent to 28,404 over the same period.

But the association says sales remained very active in May, surpassing the number of new listings by 20 per cent in nine of B.C.'s 11 real estate boards and topping 50 per cent in Vancouver, the Fraser Valley, Chilliwack and Victoria.

Prices also jumped 4.2 per cent between May 2016 and last month, with the average B.C. home selling for $752,536.

Association chief economist Cameron Muir says despite strong consumer demand, the supply of homes for sale across the province has plunged 50 per cent over the last five years.

"The entire southern portion of the province is experiencing a shortage of housing supply, which makes continuing upward pressure on home prices inevitable, at least in the near term," he says.

Provided By The: Canadian Press