West Coast home sales bounced back in May despite economic pressures that were expected to dampen demand, according to the British Columbia Real Estate Association (BCREA).
A total of 9,191 residential unit sales were recorded in May 2023, an increase of 9.9 per cent from May 2022, according to the association’s monthly statistical release.
“Home sales in May were surprisingly strong,” said BCREA chief economist Brendon Ogmundson in a June 14 release.
“Normally we’d expect to see a more persistent, negative impact from the last year of rising interest rates on sales. Instead, sales staged an early recovery in the spring, returning to a normal pace of sales well ahead of schedule.”
The Bank of Canada ended its pause on rate hikes on June 7 when it raised the key interest rate 25 basis points to 4.75 per cent, the highest it’s been since 2001. The rate hike comes at a time when the housing market is seeing a renewal in activity, increases in prices and low supply.
The price of homes throughout the province continues to climb, recovering the decline seen over the last year, according to the BCREA. Average residential prices across the province reached over $1 million last month – the first time prices have done so since April 2022.
Metro Vancouver, the Fraser Valley and Victoria are the regions within the province with an average home price above this price, with Metro Vancouver the most expensive at $1.3 million.
The average home price in B.C. last month was $1.02 million, up three per cent compared to May 2022. Total sales dollar volume also increased by 13.2 per cent from the same time last year to $9.4 billion.
Metro Vancouver, the Fraser Valley and the Okanagan saw the most sales. Significant changes in sales volume include an increase of 72.9 per cent in Chilliwack to 377 sales and a decrease of 59.7 per cent to 29 sales in the South Peace River region, which includes Dawson Creek, Chetwynd and Tumbler Ridge.
Active listings across the province remained relatively unchanged compared to last year with an increase of 1.4 per cent to 27,814.
