Latest real estate figures show ‘sign of traction for B.C.’s beleaguered market,’ says credit union group

Central 1 – a group that manages funds for BC credit unions – says home sales and prices rallied in February.

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The group defined it as “a sign of traction for BC’s struggling market.”

“However, it is too early to call this a shift in momentum given ongoing affordability strains and uncertainty surrounding the economy and interest rates,” said Bryan Yu, Central 1’s chief economist.

The Canadian Real Estate Association released its February data on Wednesday, showing home sales across Canada were up a few percent from January but still well down from last February, when sales records were smashed amid pandemic enthusiasm . At that time, interest rates were around two percent for a five-year fixed-rate mortgage. They are now around five percent.

“Insufficient supply creates balanced conditions in most markets and seller conditions,” Yu said.

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In February, prices rebounded, rising 2.9 percent to $898,777. This was still 15 percent lower than the 2022 pandemic peak. During that time, the federal government has been raising interest rates to deal with inflation that emerged in the late stages of the pandemic.”

5,067 units were sold across BC in February, similar to November last year.

CREA Chair Jill Oudil said today’s figures show “the potential for a more resilient market in the future”.

“But to reiterate last month’s conclusion: We won’t know what the market has in store for 2023 until spring.”

The CREA report showed that Calgary home prices had not fallen as much as BC

On Monday, BC Real Estate Association chief economist Brendon Ogmundson said the price of a home in BC fell about 15 percent from that peak, but there was a rebound in February.

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“While activity in provincial housing markets remains well below normal, there are encouraging signs that the market is balancing out. Home sales were up month-on-month in most markets and prices appear to be firming given the low supply,” said Ogmundson.

BCREA data showed a 26.5 percent year-over-year decline in the median price of a home in the Fraser Valley. This comes after home prices in the Fraser Valley in particular rose sharply during the pandemic.

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