B.C.’s housing market continued to slump in November as sales plummeted 50 per cent compared to the same month last year.
A total of 4,512 home sales were recorded in November by the Multiple Listing Service, down from more than 9,171 last November, said the B.C. Real Estate Association in its latest update issued Tuesday. While sales typically slow in the winter months, that figure is about 30 per cent below the historical average for the month.
The slowdown in residential market activity reflects a changed 2022, said the association’s chief economist Brendon Ogmundson.
“This time last year, home sales were near a record for November, home prices were accelerating, and mortgage rates were less than half of current levels,” he said in a statement.
“Elevated mortgage rates will continue to constrain sales activity, though with the Bank of Canada nearing the end of its tightening cycle and benchmark bond yields falling, mortgage rate relief may be on the horizon.”
Sales numbers tumbled in most B.C. real estate markets. The largest declines were posted by real estate boards in the Fraser Valley, down 58.3 per cent, Greater Vancouver, down 53.5 per cent, and Chilliwack down 51.7 per cent.
The association said it marked a shift from strong seller’s markets into balanced markets, with sales-to-active listings between 12 and 20 per cent for most regions.
Homes listed for sale jumped 63 per cent in Greater Vancouver and nearly doubled in the Fraser Valley last month compared to November 2021.
The rise in the number of active listings is especially startling in Vancouver Island and Chilliwack, where the number of listings almost tripled.
Prices across B.C. have taken a hit, with some regions posting double-digit decreases.
The Fraser Valley posted a 17 per cent decline, with average prices in November at about $915,500, down from about $1.1 million last year. Similarly, average home prices in Chilliwack dropped nearly 19 per cent to $649,000.
Victoria posted a 7.7 per cent drop in the average home price. Greater Vancouver prices dropped an average 3.3 per cent while Vancouver Island was down 2.5 per cent.
With one more month to go before 2022 comes to a close, home sales across the province were down 34.4 per cent compared to the previous year.
