New listings are lagging sales activity in BC, contributing to tight market conditions, according to the latest release from the British Columbia Real Estate Association (BCREA).

Both sales and home prices are still down year-over-year, but have been increasing on a monthly basis, for the last three months running. Most markets are registering price increases, with the average price in BC up by 3.7 percent, month-over-month, and up over 9 percent since the beginning of 2023.

In April, there were 7,427 sales recorded, a 17.7 percent decline, year-over-year. The average residential price in the province was $995,506, which is down from nearly $1.1 million a year prior. Sales dollar volume was $7.4 billion, which slid by 22.5 percent since last April.

Year-over-year, the average price drop was most significant in the Powell River region at 20.2 percent, while the year-over-year decline in the Greater Vancouver region was more modest at 3.4 percent.

New listings are stubbornly slow to come to market, falling below average trends for this time of year.

“BC home sales have now risen for three consecutive months, but that recovery in sales has not been matched by listings which continue to fall well below normal levels,” said Brendon Ogmundson, BCREA chief economist.

With buyer activity picking up pace, competition is increasing, placing upward pressure on prices, regaining ground lost when successive interest rate hikes pulled the market back.

“Average prices across the province are once again rising, recovering much of the decline since prices peaked early last year,” says Ogmundson.

While higher interest rates paused rapid home price growth in the province, restraint from sellers in a lower-priced market to list, compared to buyers actively seeking properties will continue to cause prices to climb, without some balance restored to the supply-demand dynamic.

Sales Outpace Listings in April, Causing Tight Market in BC by Heather Wright | Livabl