An earlier flurry of activity in BC’s housing market is cooling off following two Bank of Canada rate hikes in June and July.

A total of 7,103 residential unit sales were recorded across the province in July 2023. This represents an increase of 25.9% over July 2022 and a decrease of 20.6% from the 8,740 units sold in June 2023, according to the British Columbia Real Estate Association (BCREA).

“Home sales are up significantly since this time last year,” said Brendon Ogmundson, chief economist at the BCREA, in a press release.

“That said, there are signs that the most recent Bank of Canada rate increases are slowing activity as mortgage rates climb to their highest levels in over a decade.”

The BCREA describes active listings in BC as “flat” when compared with July 2022. Exactly 31,000 total listings were recorded last month – the second consecutive month that listings have risen on a month-to-month seasonally adjusted basis.

The real estate association said this signals new listings are returning to more-normal levels as sales moderate.

The average residential home price in the province increased by 5.6% to $967,948 last month, when compared to the same time last year. The total sales dollar volume for July 2023 was $6.9 billion – 33% above July 2022.

The average home price in Greater Vancouver increased by 5.5% to $1,268,359 from $1,202,394 year over year. During this time, the average price increased by 12.4% in Victoria to $1,034,257 from $919,869.

The average price recorded on the MLS is $975,232, down 5.4% compared to July 2022.

The residential sales dollar volume has decreased by 20.9% to $46.3 billion in BC over the last year. Residential unit sales were also down with a decrease of 16.3% to 47,508 units.

BC Housing Activity Dampens Following Spring and Summer Rush by Claire Wilson | BIV