Fall 2022 Housing Market Overview
- Feature Report
Read our most recent stats on residential sales and prices around the province, alongside Economist Will Dunning’s points of view on economic market factors impacting the BC market.
Q2 2022 Residential Sales Summary Report
- Quarterly Report
Read our Residential Sales Summary Report to get up to date on our Q2 2022 sales activity across BC as compared to Q1 and previous year.
Economist, Will Dunning also shares his perspective on housing market indicators affecting the real estate market across the province.
Q1 2022 Residential Sales Summary Report
- Quarterly Report
Read our Residential Sales Summary Report to get our Q1 2022 sales activity across BC as compared to Q4 and previous year.
Economist, Will Dunning also shares his perspective on housing market indicators affecting the real estate market across the province.
Q4, 2021 Residential Sales Summary Report
- Quarterly Report
Read our Residential Sales Summary Report to get our Q4, 2021 sales activity across BC as compared to Q4, 2020.
Economist, Will Dunning also shares his perspective on housing market indicators affecting the real estate market across the province.
Q3, 2021 Residential Sales Summary Report
- Quarterly Report
Our Residential Sales Summary shows you regional data as compared to 2021-Q3 and 2020-Q3 along with Economist, Will Dunning, sharing his insights on housing market indicators affecting the real estate market across the province.
Observations for Q3:
- Residential sales activity within BC has slowed, from exuberant levels seen earlier this year to a 3rd quarter sales rate that is close to normal.
- If the recent rises in mortgage interest rates are sustained, then we should expect a further slowing in sales for the first half of 2022.
- Meanwhile, the total supply of housing within BC (and across Canada) is far short of what is required by our growing population. On that basis, the “state of balance” within most local markets will probably continue to favour sellers. The housing market environment will remain highly stressful for potential buyers.
If this is the first time reading our report, you’ll find that it compares average and median pricing for key residential property types (attached, detached, condo) on a regional level.
Landcor’s Q3 data (regional charts) shows that during this time, residential sales were up by 18% compared to a year earlier. Sales increased in five of the six regions (excluding Vancouver Island). The largest increases were in Greater Vancouver and the Fraser Valley. Correspondingly, their shares of the province’s sales were higher than a year ago.
The median price continues to rise very rapidly, to $695,000 in third quarter, from $665,000 in the second quarter. Compared to a year earlier, the median price has increased by 22%. For the entire period shown in this chart, the average increase is 7.1% per year.
Q2, 2021 Residential Sales Summary Report
- Quarterly Report
Still Going Strong
It was no surprise that the BC Housing Market was extremely strong from April to June, the strongest seen in over a decade.
Our Q2 Residential Sales Summary shows regional data as compared to 2021-Q1 and 2020-Q2 along with Economist, Will Dunning sharing his insights on housing market indicators affecting the real estate market across the province.
Looking into Q3 and Beyond
There are several powerful negative factors that are likely to curtail sales during the third quarter:
- Severe weather and the wildfires,
- The interest rate increases that happened earlier this year,
- The higher interest rate that is now being used in the mortgage stress tests (now 5.25% versus the previous 4.79%), and
- A possible fourth wave for Covid-19.
That said, there are three important factors that should result in strong sales in the fourth quarter and into next year:
- While affordability has been reduced, it is still favourable in historic terms,
- The “sorting process” (changing work arrangements are encouraging many of us to consider changing our living arrangements), and
- Continuing high volumes of housing completions will result from increased housing starts
Quarterly & Monthly Sales Summary, By Region
If this is the first time reading our quarterly report, you’ll find that it compares average and median pricing for key residential property types (attached, detached, condo) on a regional level
Landcor’s Q2 data (regional charts) shows consumer interest to shift to low-density housing options. In consequence, price growth is now much more rapid for detached homes than for condominium apartments. This can be seen in the price data for all of the province and for each of the regions (except for BC North/Northwest, where the price data is highly volatile, due to low sales numbers).
Prices for attached homes are rising more rapidly than for apartments, but less rapidly compared to detached homes. As has been seen previously during the Covid-19 period, price growth is strongest for areas that might receive buyers who are moving away from the GVRD.
Q1, 2021 Residential Sales Summary Report
- Quarterly Report
Red Hot | Improved Affordability
A combination of highly-positive factors (including very good affordability, strong employment, and desires to change our living arrangements) is resulting in very strong home buying activity within British Columbia. The actual sales total of 33,283 units sold for the quarter equates to 43,300 on a seasonally-adjusted basis. This is the third highest seasonally-adjusted total of the past two decades, surpassed only by 2005-Q3 and 2006-Q1.
At the same time, the effects of long-term under-production of housing mean that there is not enough supply available. In addition, mortgage regulations have not just impeded sales – they have also been a major factor in the under-production of housing. This sharp imbalance between supply and demand is helping to result in extreme price growth.
COVID-19 is causing many to rethink their housing needs as they adjust their lifestyles to the current situation. As such, housing market activity (and price growth) is strongest in the move-to communities that are attracting people from Vancouver. It is anticipated that evolving working arrangements will remain a key factor in housing market trends.
If this is the first time reading our quarterly report, you’ll find that it compares average and median pricing for key residential property types (attached, detached, condo) on a regional level.
Our charts show that during 2021-Q1, residential sales were 49% higher than a year earlier with increases occurring in all of the regions. Of all the regions surveyed, only Greater Vancouver did not show more than 60% increase in sales. The largest increases were in Kootenay, Okanagan, and Fraser Valley.
