According to a report from the British Columbia Real Estate Association (BCREA), the housing market in British Columbia is showing signs of slowing down due to multiple rate hikes. The data released by the BCREA reveals that there were 6,608 residential units sold in the province in August 2023, which is a decrease from the 7,103 units sold in July. However, it’s important to note that the number of sales in August 2023 is still 15.7% higher than the same time last year.
The average residential price for all property types decreased slightly by just under one percent to $958,424 compared to July 2023. Despite this decrease, the average price is still 5.2% higher than last year.
Total sales dollar volume saw an increase of 21.7% to $6.3 billion between August 2022 and August 2023. However, the BCREA chief economist, Brendon Ogmundson, stated that home sales are starting to settle back into a trend of below-normal activity following a surge in the spring.
According to RBC’s data analysis of the Vancouver area, rate hikes in June and July have unsettled potential buyers, leading to a more cautious market. The Bank of Canada recently held interest rates steady at five percent after two previous hikes, and combined with low supply, Re/Max Canada predicts a soft housing market for the fall.
Looking at active listings in B.C., there was a 3.5% increase to a total of 31,000 listings. However, residential sales dollar volume decreased by 17.4% from August 2022 to August 2023.
Overall, it seems that B.C.’s housing market is experiencing a slowdown due to the impact of rate hikes and a more cautious mindset among buyers. As the market adjusts, it is likely that there will be a better supply-demand balance and potential declines in both sales and prices in the coming months.
– British Columbia Real Estate Association (BCREA)
– Re/Max Canada