B.C. home sales starting to cool as interest rates heat up: BCREA

B.C.’s real estate market is showing signs of slowing down, according to the British Columbia Real Estate Association (BCREA).

While housing sales across the province were up more than 25 per cent in July compared with the same time last year, the association says sales decreased more than 16 per cent year-to-date, reflecting the increase in Canada’s overnight lending rate to five per cent from 2.5 per cent a year ago.

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“Home sales are up significantly since this time last year,” said BCREA Chief Economist Brendon Ogmundson.

“That said, there are signs that the most recent Bank of Canada rate increases are slowing activity as mortgage rates climb to their highest levels in over a decade.”

The average sales price across the province dropped 5.6 per cent in July compared with the same month last year, reaching $967,948. In Greater Vancouver, the average sales price was $1,268,329, which is a month-over-month increase of more than five per cent but a drop of two per cent year-over-year.

The Chilliwack region had the biggest jump in unit sales year-over-year, the BCREA says, with the number of homes sold increasing more than 68 per cent. Meanwhile, Greater Vancouver saw an increase of more than 28 per cent.

The association said active listings were flat compared with July 2022 but were up on a monthly basis as sales moderated.