British Columbia’s real estate market saw a decline in home sales in March, despite a drop in mortgage rates. According to the British Columbia Real Estate Association (BCREA), home sales decreased by almost 10 per cent compared to the same time last year.
The BCREA reported that a total of 6,739 residential unit sales were recorded in March 2019, while only 6,216 were recorded in March 2020. This represents a decrease of 8.2 per cent. Additionally, the average price of a home in British Columbia also saw a slight decrease of 2.7 per cent, with the average price dropping from $789,548 in March 2019 to $768,008 in March 2020.
Despite the decrease in home sales, the BCREA remains optimistic about the future of the market. BCREA Chief Economist Brendon Ogmundson stated that the decline in sales can be attributed to the uncertainty caused by the COVID-19 pandemic. He also noted that the decrease in mortgage rates has not yet had a significant impact on the market.
The BCREA also reported that the total number of active listings in British Columbia increased by 12.4 per cent compared to March 2019. This means that there are more options for potential buyers in the market.
In terms of specific regions, the Greater Vancouver area saw a decrease in home sales of 19.9 per cent, while the Fraser Valley saw a decrease of 13.6 per cent. However, the Northern region of British Columbia saw an increase in home sales of 10.2 per cent.
Overall, the BCREA believes that the British Columbia real estate market will see a rebound once the uncertainty caused by the pandemic subsides. They also anticipate that the decrease in mortgage rates will eventually have a positive impact on the market.
