BCREA reports on the market's November performance
A total of 4,512 home sales took place across British Columbia in November, representing a significant decrease of 50.8% on an annual basis, according to the province’s top housing industry group.
The British Columbia Real Estate Association (BCREA) added that the November activity level was approximately 30% below the historical average for that month.
Sustained upward pressure from domestic and global market trends this year – chief among them being mounting inflation levels and the central bank’s outsized rate hikes – played a major role in the housing market’s deceleration, the BCREA said.
“A lot has changed in 2022,” said Brendon Ogmundson, chief economist of BCREA. “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.”
How expensive are BC homes now?
BC home prices settled at an average of $906,785 in November, which was an 8.6% decrease from the $992,245 seen during the same month last year.
Total sales dollar volume for November was $4.1 billion, down by around 55% annually. The region’s total year-to-date sales dollar volume was $77.4 billion, falling by 28.7% annually.
“Elevated mortgage rates will continue to constrain sales activity, 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,” Ogmundson predicted.
