Some of the most dramatic sales declines have been at Chilliwack, which posted a 54 percent drop in June sales compared to a year earlier.
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High mortgage rates are slowing housing markets across the province as interest rates continue to rise from record lows, the BC Real Estate Association said.
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In June, there were 7,136 residential sales recorded on the Multiple Listing Service (MLS), a decrease of 35.7 percent compared to last June and a drop of 13 percent compared to the previous month.
Total sales volume last month was worth $6.8 billion, a nearly 33 percent decrease from June 2021.
In his most recent report Published Tuesday, the association said some markets and housing types have tilted toward balanced or even buyers’ markets as high interest rates keep potential buyers on the sidelines.
“While a still-growing economy and robust population growth point to strong demand, it is increasingly difficult to meet that demand at current interest rates,” BCREA Chief Economist Brendon Ogmundson said in a statement. . “As a result, sales activity across the province, but especially in more expensive markets, continues to slow.”
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Some of the most dramatic sales declines have been at Chilliwack, which posted a 54 percent drop in June sales compared to a year earlier.
Powell River (46.3 percent), Fraser Valley (43.8 percent), Okanagan (38 percent), and Greater Vancouver (35.5 percent) are also seeing fewer buyers close.
The only region that saw an increase in sales is South Peace River. It had 59 sales in June, a nine percent increase from the same month in 2021.
Sales are slowing despite an increase in the number of active listings: June saw 16.4% more active listings across the province compared to June 2021, the BCREA said.
Prices, however, have not moved. Compared to June 2021, residential prices throughout the region have increased, except for South Peace River.
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The median home price in BC was set at $951,105, up 4.6 percent from the $909,657 recorded last June.
In Greater Vancouver, the median home price is nearly $1.8 million, an increase of 10.8 percent from June 2021, while the Fraser Valley’s median price is $994,491, an increase of 18 percent.
Vancouver Island, which saw a nearly 26 percent increase in price year over year, has a median home price of $635,430.
in a housing forecast published last May, the BCREA said that Canadian interest rates have largely dictated the direction of the real estate market.
While the first quarter of 2022 was not much different from the record pace set in 2021 during the pandemic, when interest rates fell to record lows, the market is now adjusting to rising interest rates.
Home sales are forecast to fall to “historically normal levels” for the rest of 2022 before falling to “slightly below average activity levels” in 2023.
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