After a heated period, BC home sales now returning to "normal activity"

May 13 2022, 12:03 am

According to a bulletin today by the British Columbia Real Estate Association (BCREA), it appears BC’s residential real estate market is finally beginning to normalize, following a heated period spurred by the pandemic’s pent-up demand and record low rates.

Based on BCREA’s compilation of data from real estate boards across the province, there were a total of 8,939 home sales in April 2022 — representing a decrease of 35% from the same month in 2021.

The total sales volume was worth $9.5 billion, which is a 26.5% drop from April 2021. As well, over the first four months of 2022, the total sales volume was down 10.7% to $38.4 billion, compared to the same period in 2021.

Moreover within the Lower Mainland, the number of units sold dropped by 34.5% in the Real Estate Board of Greater Vancouver’s (REBGV) jurisdiction from 5,010 units in April 2021 to 3,281 units in April 2022, and fell by 44.8% in the Fraser Valley Real Estate Board’s (FVREB) jurisdiction from 2,869 units in April 2021 to 1,583 units in April 2022.

The sales volume dropped from $6.07 billion in April 2021 to $4.4 billion in REBGV, while the volume also dropped from $2.99 billion in April 2021 to $1.82 billion in April 2022 in FVREB. This represents year-over-year drops of 27.5% and 39%, respectively.

And this activity is driven by the Bank of Canada’s interventionist rate hikes, with more hikes likely through the remainder of this year.

“Canadian mortgages have sharply increased, surpassing 4% for the first time in a decade,” said BCREA chief economist Brendon Ogmundson in a statement.

“With interest rates rising, demand across BC is now on a path to normalizing. However, given existing levels of supply, markets conditions remain tight.”

But home prices, of course, are still on the rise, with the average province-wide price reaching $1.065 million in April 2022 — up by 13% from $944,000 in April 2021. Average home prices in REBGV are up by 10.7% year-over-year to $1.34 billion, while average home prices in FVREB are up by 10% year-over-year to $1.147 billion.

However, provincial active home listings were 7.5% lower in April 2022 than in April 2021, although listings are beginning to accumulate in some markets with demand slowing in pace. BCREA expects it will take a year or more for the supply of listings to return to balanced market levels.

GET THE LATEST REAL ESTATE, ARCHITECTURE, URBAN ISSUES, AND TRANSPORTATION NEWS DIRECTLY TO YOUR INBOX. SUBSCRIBE TO URBANIZED:
Buzz Connected Media Inc. #400 – 1008 Homer Street, Vancouver, B.C. V6B 2X1 [email protected] View Rules
Kenneth ChanKenneth Chan

+ News
+ Real Estate
+ Urbanized
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT