Interest rates

Real estate in British Columbia: the rise in interest rates “normalizes” sales


The British Columbia Real Estate Association says the sharp rise in mortgage rates is pushing the province’s home sales on a “path to normalization”, although it believes a balanced market is at least a year away.

The association released British Columbia home sales figures for April, showing 8,939 properties changed hands last month, down 34.9% from the record set in April last year .

However, prices continue to climb, averaging $1.065 million in April, a 12.9% increase from the same period in 2021.

The association’s chief economist, Brendon Ogmundson, says fewer homes are coming up for sale, meaning market conditions remain tight, but listings are “starting to pile up” in some markets.

The April report shows that the number of active listing sales remains well above 20% in all regions of British Columbia, putting continued upward pressure on prices.

The association says active listings in the province were 7.5 per cent lower in April than the same month last year, but Ogmundson predicts the trend will reverse as demand declines.

“Canadian mortgage lending rose sharply, exceeding 4% for the first time in a decade,” says Ogmundson.

“With rising interest rates, demand across British Columbia is now on the path to normalization,” he said in the statement released Thursday.

This report from The Canadian Press was first published on May 12, 2022.