Fraser Valley home prices remain more than 25 percent lower than a year ago, BCREA data shows
Central 1, a group that manages funds for credit unions in BC, says home sales and prices rebounded in February.
The group called it “a sign of traction for the beleaguered BC market.”
“However, it is too early to call this a change in momentum given the persistence of tense affordability, coupled with economic and interest rate uncertainty,” Central 1 chief economist Bryan Yu said.
The Canadian Real Estate Association released its February data on Wednesday, showing that the number of home sales across Canada had risen a few percent over January, but still well below last February, when sales records were broken. due to the enthusiasm for the pandemic. At the time, interest rates hovered around two percent for a five-year fixed mortgage. Now they are around five percent.
“Insufficient supply is keeping conditions balanced in most markets and conditions for sellers,” Yu said.
In February, prices recovered, rising 2.9% to $898,777. This was still 15 percent lower than the 2022 pandemic peak. In that time, the federal government has raised interest rates as a way to control inflation that emerged in the later stages of the pandemic.”
5,067 housing units were sold in BC in February, similar to last November.
CREA president Jill Oudil said today’s figures showed “the potential for a stronger market to come.”
“But to repeat last month’s bottom line, we won’t know what the 2023 market has in store until spring.”
The CREA report showed that residential real estate prices in Calgary had not fallen as much as those in BC
On Monday, BC Real Estate Association chief economist Brendon Ogmundson said BC home prices were down about 15 percent from that peak, but there had been a rebound in February.
“While activity in the provincial real estate markets remains well below normal, there are encouraging signs that the market is leveling off. Home sales are up month-on-month in most markets, and prices appear to be strengthening in the face of tight supply,” Ogmundson said.
BCREA data showed a 26.5% year-on-year drop in the median home price in the Fraser Valley. This came after Fraser Valley home prices in particular spiked during the pandemic.
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