Sales in the region totaled 1,887, which is 35.2 percent below the 10-year July sales average. The board says these figures signal a new buying cycle – characterized by falling demand for homes – is here. “I think home buyers and sellers are taking a breather after a frantic two years,” said Craig Munn, REBGV vice president of communications. Munn said buyers’ attention was driven by rising interest rates and inflation concerns. “Homebuyers are wise to take time to assess what these changes mean for their own personal circumstances.” The board says part of the new market cycle includes a gradual increase in the number of homes for sale, but last month’s listings totaled 3,960 homes, down nearly 10 percent from July 2021 and 25 percent from June 2022. Meanwhile, the composite benchmark price for the region was over $1.2 million last month, up about 10 percent from July 2021 and down two percent from June 2022. Munn said prices have started to fall in the past three months, but at a gradual rate of about two percent per month.
“A very normal market response”
Brendon Ogmundson, chief economist at the BC Real Estate Association, said demand is falling across the province. “No matter what market you look at, sales are generally about 20 to 25 percent below normal for this time of year,” Ogmundson said. Ogmundson said that while prices are coming down slowly, a big drop in prices is highly unlikely. “What we’re seeing is a very normal market response to very high interest rates.”
