BCREA Housing Market Update for June 2022
BCREA released it’s latest Housing Market Update for June 2022. Chief Economist Brendon Ogmundson discusses the May 2022 statistics.
Mortgage rates have rapidly increased and have reached their highest level since 2009. Due to the changing interest rates home sales in BC are returning to a more average activity level. BC home sales in May were 8,214 units which is down 35.1% from May 2021 and 12% from April which is seasonally adjusted. There are 4.4% more active listings in the province than this time last year. This is the first year over year increase in active listings since 2019. As sale activity slows, the inventory of active listings will normalize. Markets will likely reach a healthy level of listings in 8-12 months in most markets. The sales to active listings ratio was 30% in May which has driven the markets closer to a more balanced market.
The MLS average price for BC was up 9.3% year over year in May. Fewer expensive homes are selling this year compared to last year due to many economic factors. Because of this the average price of homes has come down as a result of the changing composition of home sales.
Kamloops specifically saw 286 units sales which was a 28.5% decline year over year. The average price was up 18.7% to $641,232. The year over year change was very similar to what was seen in the Okanagan for unit sales however Kamloops saw a larger year over year change in price. Active listings in the city are up 26.2% to 849. This equates to 3 months worth of supply.
It is a challenge to compare the sales to the past year or two as the real estate markets in BC and all over Canada saw huge growth. Low interest rates and Covid related policies have fueled the market. Buyers found that they had more money during these times as it was much more difficult to travel and spend substantial amounts of money. It appears our market volumes are returning to pre-pandemic levels where the market was more balanced and not frantic like we have seen over the past year or so.
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