Positive Indicators
As spring unfolds, there’s optimism for British Columbia’s real estate market rebounding from a sales and price dip. The B.C. Real Estate Association reported over 4,700 residential unit sales in the Multiple Listing Service (MLS) last month, signaling a potential turnaround.
Sales and Price Trends
Comparing February 2023 to the previous year, sales are down by 46.5%, and the average MLS listing price has dropped by 14.7% to $941,575 from $1.1 million. However, the average price rose by 8.5% over January, reaching its highest level since July 2022, indicating a more stable market.
Early Signs of Stability
Brendon Ogmundson, Chief Economist at BCREA, notes early signs of the market bottoming out. He anticipates increased stability, especially during the upcoming spring months, which traditionally witness heightened real estate activity. The next two months are crucial, with potential for encouraging signs if the spring market exceeds expectations.
Unique Market Conditions
Tom Davidoff, Associate Professor at UBC’s Sauder School of Business, finds it surprising that housing prices haven’t plummeted despite low sales volumes. He attributes this to homeowners’ reluctance to sell in the current market conditions. The impact of rising interest rates on housing prices over the last decade remains a significant factor.
Looking Ahead
While the real estate market in B.C. shows promising early signs of a shift, a full recovery is on the horizon. The next few months will be a decisive test, and if spring exceeds expectations, it could mark the beginning of a positive trajectory for the market.