June activity remains well below historical average
The pace of home sales in British Columbia remained sluggish by historical standards in June, coming in 19% lower than the same time last year with buyers seemingly waiting for further action from the Bank of Canada before stepping into the market.
New British Columbia Real Estate Association (BCREA) data showed on Monday that a total of 7,082 properties changed hands last month, 24% below the 10-year average for June as high borrowing costs and steep affordability issues continue to weigh down on purchase activity.
Average prices ticked up on a year-over-year basis, coming in 1% higher than June 2023 at $998,159, while active listings across the province also jumped in almost every region.
Victoria saw an especially noteworthy jump in active listings, with units available increasing by 53.9% compared with 12 months ago. Fraser Valley registered a 43.8% increase, while active listings were up 42% in Greater Vancouver year over year.
The data reflected the fact that last June was the high point of Canada’s unexpected housing market resurgence in the first half of 2023 before its protracted cooldown, according to BCREA’s chief economist Brendon Ogmundson.
Still, he said the fact that sales and active listings were slowly increasing on a monthly basis was “keeping the market in balanced territory.”
The Bank of Canada hit pause on its rate-hiking path in the opening months of 2023, helping spur a boost in housing market activity before two back-to-back rate increases last summer put a pin in that recovery.
The latest US inflation data, showing a slowdown to 3% in June, has sparked expectations of interest rate cuts by both the US Federal Reserve and the Bank of Canada (BoC). https://t.co/NGL73dan5S#economicoutlook
— Canadian Mortgage Professional Magazine (@CMPmagazine) July 12, 2024
At the beginning of last month, the central bank cut rates for the first time in over four years – and further cuts are expected in the second half of this year amid a labour market slowdown and cooling inflation.
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