Real estate experts are expecting the B.C. housing market to heat up this summer with interest rates falling amid ballooning inventory. The BC Real Estate Association (BCREA) latest market report notes that the number of listings continues to rise, with the total number of active listings climbing throughout the spring. Meanwhile, the Bank of Canada recently reduced interest rates and indicated further decreases could be on the horizon.
Increased Listings and Sales Activity
“The market is heading into the summer in a state of relative calm with much more choice for buyers,” said BCREA Chief Economist Brendon Ogmundson in the report. “April was an above-average month for new listings activity, registering the highest pace since 2021. Sales are still slightly below normal, which has led to a substantial increase in total inventory, though at a level still far below long-run balance.”
Urban Areas See Significant Growth
The BCREA says there were almost 7,570 residences sold in April this year, up 1.5 per cent from April 2023. Urban areas around the province saw the biggest increases in listings, with Victoria leading the way with 51 per cent more listings.
Home Prices and Future Market Outlook
Home prices have also continued to increase. The BCREA says the average price of a residence in B.C. last month was an even $1 million, up nearly 1.5 per cent from the previous year. While interest rates continue to remain considerably higher than pre-pandemic levels, relief may be coming, bringing down the cost of financing and encouraging potential buyers to enter the market. “We do see renewed downward momentum in underlying inflation,” Bank of Canada head Tiff Macklem told the House of Commons finance committee earlier this month. “The message to Canadians is, we are getting closer. We are seeing what we need to see, and we just need to be confident that it will be sustained.”
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