Number of annual home sales in British Columbia dropped by 35% in 2022

New condominium towers next to SkyTrain Metrotown Station in Burnaby's Metrotown district. (Google Maps)

The volume of home sales in British Columbia started off strong over the first quarter of 2022 as a continuation of the heightened activity of 2021, before steeply dropping off starting in March upon the Bank of Canada’s first of seven interest rate hikes over the course of 2022.

According to a new compilation of local real estate board data by the BC Real Estate Association (BCREA), a total of 80,874 home sales were recorded in 2022, representing a 35% drop from the record of 124,788 units sold in 2021.

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All 11 local real estate boards in the province recorded year-over-year sales number drops, with Chilliwack leading with a drop of 46%, followed by the Fraser Valley (FVREB) falling by 45%, Greater Vancouver (REBGV) by 34.8%, Okanagan by 33%, and Victoria by 31.7%.

Similarly, all real estate boards also saw the dollar volume of sales drop between 2022 and 2021, with the provincial total dropping by 30% from $115.7 billion in 2021 to $80.6 billion in 2022.

The Real Estate Board of Greater Vancouver (REBGV) saw its dollar volume of sales fall by 30% from $53.4 billion in 2021 to $37.2 billion in 2022, while the Fraser Valley Real Estate Board, which includes select Metro Vancouver cities such as Surrey, Langley, and Delta, saw a drop of 40% from $26.8 billion in 2021 to $16 billion in 2022.

While the total number of home sales and sales values dropped, the average price increased by 7.5% province-wide, with FVREB going up by 8.4% to $1.097 million and REBGV increasing by 7% to $1.27 million.

The annual average MLS price across BC was $997,000 in 2022 and it will certainly cross and reach the $1 million mark for the first time in early 2023.

Home sales in British Columbia in 2022 and 2021, with the shaded area representing the historical monthly range of sales. (BC Real Estate Association)

According to a new real estate market forecast by Central 1, home prices in BC are expected to further drop through the first half of 2023, before stabilizing in the middle of the year from the expected easing of mortgage rates and record-breaking immigration.

Employment levels will weaken from the economic slowdown but remain relatively strong as a result of a slowdown in hiring rather than significant job cuts. BC’s unemployment rate is currently hovering at 4%.

Sales are forecast to increase by 10.7% in 2024 and 12.5% in 2025 from stronger demand, with urban areas expected to lead recovery due to higher immigration. Overall home prices are expected to see a downward trend toward 2020 levels.

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