Average BC home price reached nearly $1.1 million last month, up by 15.7%

The average home price in BC reached $1.096 million in March 2022, which marks a hefty 15.7% increase from the average price of $946,813 recorded in March 2021.

A total of 11,464 residential unit sales were recorded by the Multiple Listing Service (MLS), according to a new report from the British Columbia Real Estate Association (BCREA). This marks a 24.1% decrease from a record-breaking March 2021.

Total dollar sales amounted to $12.6 billion, which is 12.1% decline from the same time last year.

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“Home sales in the province continue to moderate from record highs of this time last year,” BCREA Chief Economist Brendon Ogmundson said in a statement.

Active listings also saw a downward trend, with the BCREA reporting that they were 12.4% lower than the same time last year, adding that the total inventory of homes that were available for sale was under 20,000 units.

An interesting factoid that the report highlights is what it takes for a market to be balanced. As mentioned, there were under 20,000 homes available for sale, and the BCREA notes that the province would need approximately 40,000 for the market to be considered balanced.

Year-to-date, sales dollar volume for BC residential sales was down 4.1% to $28.8 billion compared to the same period in 2021. Residential unit sales were also down 20.1% to 26,577 units, and the average MLS residential price was up 20% to $1.086 million.

When it comes to mortgage rates, after a dip during the height of the pandemic, the BCREA report shows that rates are starting to rise quite drastically.

“Given the sharp rise in Canadian mortgage rates and expected tightening from the Bank of Canada, activity will likely slow further in the second half of this year,” Ogmundson adds.

BCREA

When looking at the various real estate boards across the province, they all share one thing in common: the price of homes is going up no matter where you are in BC, with the exception of South Peace.

BCREA

Chilliwack saw the largest increase year-over-year, and while Greater Vancouver saw the smallest increase, it still sits at the top of the list when it comes to the highest average home price in BC.

The report makes one thing clear when it comes to housing in the province, and that is the fact that there just isn’t enough supply to go around.

Will the federal government plan be enough to fix BC’s housing problem? Only time will tell.