Insatiable demand and record-setting sales have pushed British Columbia home prices up nearly 25 per cent from this point last year.
The British Columbia Real Estate Association (BCREA) reports the province’s average residential price reached $1,042,169 in January, a 23.5 per cent increase from $843,918 recorded in January 2021.
Population growth and surging demand contributed to significant price gains in the Chilliwack (43.5 per cent) and Fraser Valley (30.2 per cent) regions during the last year, reaching average prices of $907,385 and $1,230,631, respectively.
Further west, Vancouver Island saw prices rise 34.2 per cent year-over-year to an average of $709,798, with nearby Powell River close behind at 29.9 per cent ($600,868).
According to the BCREA, Greater Vancouver remained the most expensive region in the province with an average price of $1,274,315 — up 17 per cent year-over-year — followed by the Fraser Valley.
“The B.C. housing market entered 2022 with the lowest level of active listings on record and significant demand-side momentum,” said BCREA chief economist Brendon Ogmundson, noting approximately 13,000 total active listings across the province, less than one-third of historically healthy inventory levels. “As a result, continued upward pressure on home prices is expected in all markets.”
The BCREA forecasts home prices to increase 8.5 per cent in 2022, with more balanced market conditions reducing price growth during the second half of the year. Additional inventory and reduced sales are expected to slow price growth to 2.7 per cent in 2023.
B.C.’s updated price figures arrive amid a slowdown in home sales. Province-wide, the BCREA recorded 6,138 residential unit sales through its Multiple Listing Service in January, a 14.7 per cent drop from January 2021, although rising home prices boosted the total sales dollar volume to $6.4 billion, representing a 5.3 per cent increase.
“Sales activity is down compared to record levels at the start of last year,” said Ogmundson. “However, the level of sales activity remains strong compared to the long-term average and inventory is still incredibly low. As a result, it will take quite some time to get back to a healthy balance in the B.C. market.”
