Provincial Home Sales in BC Have Slowest March Since 2013

Steve Saretsky -

It’s been over a year now since the BC Government introduced a bout of policies aimed at cooling the provincial housing market. Policy measures from the BC Government in addition to a barrage of other demand side measures, including the B-20 Mortgage Stress test and restrictions on Chinese capital flight continue to weigh on the provincial housing market.

Weakness has been well documented in Greater Vancouver where home sales tumbled to thirty three year lows in March. However, that has spread across the province where home sales in BC fell 23% on a year-over-year basis in March. It was the slowest month for sales since 2013, and down 54% since peaking in 2016.

BC Home Sales March
BC Home Sales for the month of March.

Dollar volumes have also fallen significantly, which is unsurprising given the steep decline in sales, particularly for luxury homes. Sales volumes fell 27% from last March and the 12 month sum of total dollars spent paints a rather ominous picture.

BC Residential Real Estate Dollar Volume
Total dollar volume, 12 month sum.

The drop in sales activity and the rise in listings continues to place downwards pressure on prices. Prices dipped 5% from last year, marking the eleventh consecutive month provincial home prices were negative on a year-over-year basis, the longest losing skid since 2013. The average sales price remains elevated at $686,656.

Average sales price BC
Average sales price in BC

Join the Monday Newsletter

Every Monday morning you'll receive a short and entertaining round-up of news on the Vancouver & Canadian Real Estate markets.

"*" indicates required fields

The Canadian Economy

Steve Saretsky -

Happy Monday Morning! We got a string of new data this past week confirming inflation in consumer goods, and housing are proving to be more than transitory. Canada’s consumer price index continued to drift higher with prices hitting an 18 year high, up 4.7% from last October. The recent floods in BC...

Steve Saretsky -

The calls for impending interest rate hikes continues. CIBC’s chief economist, Benjamin Tal, was out recently suggesting the Bank of Canada could hike its benchmark interest rate at least six times beginning in early 2022. “I think there is a risk of getting into the market at today’s rates,” noted Tal....

Steve Saretsky -

The BC Government announced it is looking at several cooling measures for the housing market in 2022. They have highlighted two measures. The first is an end to the blind bidding process, and the other is a mandatory “cooling off period” which will allow any buyer a 7 day recession...

Steve Saretsky -

The Bank of Canada continues to slowly drain liquidity after flooding the system with a firehose of cash during the pandemic. Bank of Canada governor Tiff Macklem announced the end of Canada’s QE program (also known as money printing). Furthermore, in Macklems words, “We expect to begin increasing our policy...

Steve Saretsky -

Consumer price inflation ripped higher in September, surging 4.4% year-over-year, the fastest pace of price increases in 18 years. Let’s discuss this further. We have an inflation problem and the Bank of Canada remains of the view that inflation will be transitory. Although they really can’t say otherwise, for if...

Get the Saretsky Report to your email every month

The Saretsky Report. December 2022