B.C. real estate sales see further decline in September
Posted October 12, 2022 10:25 am.
Last Updated October 12, 2022 10:26 am.
The real estate market continues to struggle amid rising interest rates.
According to the BC Real Estate Association, the latest figures show sales fell 45 per cent in September 2022, compared to the same month last year.
Some areas of the province were hit harder than others. In the Fraser Valley, sales were down 52.3 per cent last month. That region also saw a dip in prices, by 5.3 per cent.
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Meanwhile, the Greater Vancouver region saw a decline in sales of 46.8 per cent in September 2022, though prices increased by 4.9 per cent.
“Mortgage qualifying continues to be a significant hurdle for many potential buyers as interest rates rise,” said BCREA Chief Economist Brendon Ogmundson.
“In addition, many trends that drove demand in smaller markets, such as remote work and the quest for affordable space, have faded in prominence. As a result, we see a stronger pullback in markets outside of major metropolitan areas.”
Sale prices were generally split across the province, with some other areas, like Victoria and the Okanagan, seeing increases, while others, like Chilliwack, saw averages drop.
On a provincial level, the average MLS residential price rose by 1.74 per cent to $927,119 last month compared to September 2021, when it was $912,008.
The latest data comes about a month after the BCREA said some parts of the province were starting to become “buyer’s markets.” In early September, the association predicted sales would drop by almost 35 per cent in the coming quarter.
“Mortgage rates have risen at a much faster rate and to a higher level than previously anticipated,” Ogmundson said in a release on Sept. 8. “Faced with a dramatic shift in the cost of borrowing, housing market activity is likely to fall well below normal over the next year.”
