British Columbia home sales activity was cut in half year-over-year, reports the British Column Real Estate Association.
A total of 4,512 residential unit sales were recorded in November 2022 – half of last year’s sales volume and 30 per cent below the historical average.
“A lot has changed in 2022,” Brendon Ogmundson, BCREA chief economist, said. “This time last year, home sales were near a record for November, home prices were accelerating, and mortgage rates were less than half of current levels.”
The average list price in B.C. was $906,785 in November 2022 – 8.6 per cent lower than this time last year. Chilliwack and Fraser Valley saw the highest price drops at 18.6 and 17.1 per cent respectively.
But despite the overall decrease in price, mortgage rate hikes continue to be an issue for prospective buyers, slowing down sales activity across the province.
“Elevated mortgage rates will continue to constrain sales activity,” Ogmundson added. “Though with the Bank of Canada nearing the end of its tightening cycle and benchmark bond yields falling, mortgage rate relief may be on the horizon.”
Year-to-date, B.C. residential sales dollar volume was down 28.7 per cent from the same period in 2021. Residential unit sales were down 34.4 per cent to 77,376 units, while the average MLS ® residential price was up 8.6 per cent to $1 million.