British Columbia Sun

Higher interest rates forcing B.C. home sales back toward normal

BC

Key takeaways: 

  • Home sales in April fell by 34.9 percent from a record high a year before.
  • April numbers from the B.C. Real Estate Association offers a drop in home sales of 34.9 percent from the record high set in April previous year. 

The British Columbia Real Estate Association states the substantial increase in mortgage rates is making the region’s home sales down “a way to normalizing.” However, it estimates a balanced market is at least a year away.

The association has released the B.C. home sales figures for April, leading 8,939 properties changed hands the previous month, a decline of 34.9 percent from the record high set in April.

However, costs continue to rise, averaging $1.065 million in April, a 12.9 percent upsurge over the same period in 2021.

Association chief economist Brendon Ogmundson says rarer homes are listed for sale, indicating market situations stay tight, but listings are “beginning to accumulate” in some markets.

Also read: B.C. nurses rally at the legislature over staffing lacks

The British Columbia Real Estate Association states the substantial increase in mortgage rates is making the region’s home sales down “a way to normalizing.

The April report reveals the number of sales to active listings stays far beyond 20 percent in all B.C. areas, putting a constant upward force on costs.

The association says active regional listings were 7.5 percent lower in April than in the same prior year, but Ogmundson indicates the trend will reverse as demand fades.

“Canadian mortgages have sharply risen, surpassing four percent for the first time in ten years,” said Ogmundson.

“With interest rates increasing, demand across B.C. is now on the way to normalizing,” he stated in the statement released Thursday.

Source – cbc.ca

Show More

Leave a Reply

Your email address will not be published.