Insatiable demand and record-setting sales have pushed British Columbia home prices up nearly 25% from this point last year.

The British Columbia Real Estate Association (BCREA) reports the province’s average residential price reached $1,042,169 in January, a 23.5% increase from $843,918 recorded in January 2021.

Population growth and surging demand contributed to significant price gains in the Chilliwack (43.5%) and Fraser Valley (30.2%) regions during the last year, reaching average prices of $907,385 and $1,230,631, respectively.

Further west, Vancouver Island saw prices rise 34.2% year-over-year to an average of $709,798, with nearby Powell River close behind at 29.9% ($600,868).

According to the BCREA, Greater Vancouver remained the most expensive region in the province with an average price of $1,274,315 — up 17% year-over-year — followed by the Fraser Valley.

“The BC housing market entered 2022 with the lowest level of active listings on record and significant demand-side momentum,” said BCREA chief economist Brendon Ogmundson, noting approximately 13,000 total active listings across the province, less than one-third of historically healthy inventory levels. “As a result, continued upward pressure on home prices is expected in all markets.”

The BCREA forecasts home prices to increase 8.5% in 2022, with more balanced market conditions reducing price growth during the second half of the year. Additional inventory and reduced sales are expected to slow price growth to 2.7% in 2023.

BC’s updated price figures arrive amid a slowdown in home sales. Province-wide, the BCREA recorded 6,138 residential unit sales through its Multiple Listing Service in January, a 14.7% drop from January 2021, although rising home prices boosted the total sales dollar volume to $6.4 billion, representing a 5.3% increase.

“Sales activity is down compared to record levels at the start of last year,” said Ogmundson. “However, the level of sales activity remains strong compared to the long-term average and inventory is still incredibly low. As a result, it will take quite some time to get back to a healthy balance in the BC market.”

Tight BC Housing Market Sees Prices Jump Nearly 25% Year-Over-Year by Ryan Garner | Livabl