Average price of BC home up 15% from last year

(Vancouver Sun April 18th) The average price of a home in British Columbia rose 15 per cent from March of last year to March 2011, the B.C. Real Estate Association reported in a news release today.

The BCREA release said Multiple Listing Service residential sales in the province were up 11.5 per cent compared to March of 2010.

Sales in March amounted to 8,600 units. The average price in March was $594,157.

"We continue to observe a two-speed market in BC, with surging consumer demand in Metro Vancouver overshadowing more moderate demand in other regions," Cameron Muir, BCREA chief ecconomist, said in the release.

"Vigorous consumer demand drove Greater Vancouver to its most active March since 2004, while the Fraser Valley had its strongest March in four years.

"Conversely, sales activity in other B.C. markets is expanding at a pace more inline with overall economic growth."

Surprise, surprise: Central Bank holds overnight rate at 1 per cent

Bank of Canada announced yesterday, it will maintain the overnight interest rate at 1%, which is a 3% bank prime rate. The key indicators for the rate hold, were strong Canadian economic recovery, the soaring loonie, global economic challenges and the disaster in Japan.

There is also indication that the bank will not raise rates at the next meeting on May 31st, instead it will be more likely to occur in July or September when the bank meets. This is great news for all you variable mortgage holders.

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