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.

Click here to visit to BCREA’s website. To view other statistics for the Kamloops and BC real estate market click here.

If you want to be kept informed on Kamloops Real Estate, News and more visit our Facebook Page.

To search for Kamloops real estate and homes for sale click here.

BCREA: Mortgage Rate Forecast June 2022

BCREA has released it’s latest mortgage rate forecast. To summarize their report:

  • In the last report BCREA forecasted that the 5 year fixed mortgage rates would reach 4% later in 2022. Instead they are at 4.69% to battle inflation.
  • Bond markets expect very aggressive Bank of Canada.
  • Expecting the 5 year fixed mortgage rate to reach 5% which is the first time since 2009.
  • Current Buyers currently qualified at a rate of 6.49% with it likely going up to a 7% qualification soon. This has not been seen in the Canadian market since the early 2000’s.
  • Bank of Canada’s main focus is to lower inflation at this time.

Economic Outlook

  • Growth in the first quarter of 2022 was 3.1%.
  • Likely will see a slow down in growth due to inflation.
  • Growing concern that 2023 will see a recession but indicators suggest the economy is not currently in a recession.

Bank of Canada Outlook

  • The ultimate end for interest rate increases will depend on the trajectory of inflation over the next few months.
  • Some see signs of inflation peaking while consumer and commodity prices continue to rise.

Full Report is included below or download the PDF here.

Click here to visit to BCREA’s website. To view other statistics for the Kamloops and BC real estate market click here.

If you want to be kept informed on Kamloops Real Estate, News and more visit our Facebook Page.

To search for Kamloops real estate and homes for sale click here.

BCREA: Rising Mortgage Rates Continue to Slow Market Activity

Vancouver, BC – June 13, 2022. The British Columbia Real Estate Association (BCREA) reports that a total of 8,214 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in May 2022, a decrease of 35.1 per cent from May 2021. The average MLS® residential price in BC was $1 million, a 9.3 per cent increase from $915,392 recorded in May 2021. Total sales dollar volume was $8.2 billion, a 29.1 per cent decline from the same time last year.

“Canadian mortgage rates continue to climb,” said BCREA Chief Economist Brendon Ogmundson. “The average 5-year fixed mortgage rate reached 4.49 per cent in June. That is the highest mortgage rates have been since 2009.”

Provincial active listings were 4.4 per cent higher than this time last year, the first year-over-year increase in active listings since 2019. However, active listings still remain below what is typical for a balanced market, though current market conditions have a high degree of variation across regions and product types.

Year-to-date, BC residential sales dollar volume was down 14.5 per cent to $46.7 billion, compared with the same period in 2021. Residential unit sales were down 26.3 per cent to 43,921 units, while the average MLS® residential price was up 16 per cent to $1.06 million.

Click here to visit to BCREA’s website. To view other statistics for the Kamloops and BC real estate market click here.

If you want to be kept informed on Kamloops Real Estate, News and more visit our Facebook Page.

To search for Kamloops real estate and homes for sale click here.

BCREA: Sharply Higher Mortgage Rates Will Slow Housing Activity in BC Through 2023

BCREA 2022 Second Quarter Housing Forecast

Vancouver, BC – May 31, 2022. The British Columbia Real Estate Association (BCREA) released its 2022 Second Quarter Housing Forecast today.

Multiple Listing Service® (MLS®) residential sales in the province are forecast to decline 22 per cent from a record high 2021 to 97,240 units this year. In 2023, MLS® residential sales are forecast to fall an additional 12.4 per cent to 85,150 units.

“After a strong first quarter, BC markets are now adjusting to a much different interest rate environment,” said BCREA Chief Economist Brendon Ogmundson. “With mortgage rates surpassing 4 per cent for the first time in over a decade, the housing market over the next two years may have very little resemblance to the housing market of the past year.”

On the supply side, we have begun to see active listings move off of record lows and re-sale inventories trend back toward balance. However, because inventories reached such low levels over the past year, the journey back to balance may take up to a year or more in some areas. As markets adjust to the new interest rate landscape, we anticipate that prices may be somewhat volatile but will ultimately flatten out through 2023.

Click here to visit to BCREA’s website. To view other statistics for the Kamloops and BC real estate market click here.

If you want to be kept informed on Kamloops Real Estate, News and more visit our Facebook Page.

To search for Kamloops real estate and homes for sale click here.

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