Some B.C. homeowners faced big losses in 2023: report

Many people who made the decision to buy property in 2022’s harsh market conditions are facing a decline in housing prices throughout the nation, according to a new analysis. 

Point2Homes’ latest data shows some homeowners in B.C. are among those experiencing these big losses. 

The analysis says in Kelowna, new single-family homes have lost $98 every day for the past year, making it the biggest loss in B.C. and third biggest loss in Canada. That means, if an affected homeowner wants to sell today, they would be selling their properties for $35,900 less than they bought it for.

Single-family homeowners in Victoria also experienced a decrease in property value of nearly $1,000 in a year.

This means Canada’s newest single-family homeowners from Kelowna and Victoria may have to wait more than others to build wealth, especially longer than those in other B.C. cities like Vancouver, Richmond, Burnaby, Langley, and Delta, where home values increased more than $100,000 to $200,000 in a year. 

Along with single-family homes, Point2Homes says condos are also losing value in Kelowna and Victoria. They faced daily losses of $60 and $77 respectively, resulting in yearly decreases of $22,000 and $28,250, with Victoria among the three biggest net losses in condos nation-wide.

Canadian Real Estate Association (CREA) stats from October 2023 revealed a marked slowdown in activity, stating that the housing market is likely going into “hibernation” until spring. 

Although December 2023 saw an uptick in sales activity, that was “likely just some of the sellers and buyers that were holding onto unrealistic pricing expectations last fall finally coming together to get deals done before the end of the year,” according to CREA Senior Economist Shaun Cathcart.

Despite a price decline trend affecting single-family homes and condos across Canada, residents in most of the B.C. cities included in Point2’s analysis showed increases in home value. These gains ranged from $67 in Kamloops to $572 in Vancouver for single-family homeowners. Condo owners in most markets also saw their property values increase, with properties in Coquitlam and Richmond adding more than $50,000 in just one year.