BC housing market activity subdued last month showing "signs of stabilizing"

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The BC Real Estate Association (BCREA) recently released its latest housing report looking at housing activity in the province, suggesting that September 2022 saw a decrease in residential unit sales of 45.8% compared to the previous year.

In September, the BCREA said the market showed “signs of stabilizing.”

When looking at average prices, according to the Multiple Listing Service (MLS), the residential price reached $927,119 last month, a 1.9% increase compared to the same period the previous year when it was $912,008.

The total sales dollar volume was $4.6 billion, a 44.9% decline compared to the same period last year.

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According to BCREA Chief Economist Brendon Ogmundson, mortgage qualifying is a crucial issue.

“Mortgage qualifying continues to be a significant hurdle for many potential buyers as interest rates rise,” he said.

“In addition, many trends that drove demand in smaller markets, such as remote work and the quest for affordable space, have faded in prominence. As a result, we see a stronger pullback in markets outside of major metropolitan areas.”

He added that the provincial market is in “balanced territory.”

Ogmundson also says that some regions are shower lower demand for expensive properties.

Even though the BC housing market activity was “subdued” last month compared to 2021, prices were up in nearly every region in BC.

For example, in September 2021 in Greater Vancouver, the average residential price was $1,174,305. Last month that number grew to $1,232,213. One notable exception to this was the average price in the Fraser Valley. In September 2021, the average price was $1,005,765; last month it decreased to $952,076.

Chilliwack saw the most significant drop in average prices.

BCREA

Okanagan saw the most considerable increase (16.2%) to $831,124 from $715,183.