Market optimism spurs a surge in home sales
British Columbia's housing market has witnessed a significant resurgence at the start of the year, with sales and prices making notable leaps forward.
The British Columbia Real Estate Association (BCREA) has reported that residential sales jumped to 3,979 units in January alone, a substantial 29.4% increase from the previous year. This surge in activity is accompanied by a rise in the average residential price to $957,909, reflecting a 10.5% increase from two years ago when prices hit a low. The total sales dollar volume has also seen a robust increase, reaching $3.8 billion, up 42.9% from last year.
Read next: What's in store for the BC housing market this year?
"Home sales are on a clear uptrend to start 2024. A sharp decline in fixed mortgage rates and expectations for future Bank of Canada rate cuts is driving sentiment in the market and bringing pent-up demand off the sidelines,” BCREA's chief economist Brendon Ogmundson said.
For BCREA, the normalization of new listings activity is a promising sign even if inventory levels remain low historically. As the market continues to pick up, the steady addition of new inventory will be essential to ensure a balanced market amid accelerating sales.
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