Housing boom set to continue through 2022 in northern British Columbia

Here in northern British Columbia, the number of sales was extremely high, narrowly missing the 2006 record of 62 short sales according to the BC Northern Real Estate Board (BCNREB).

“It’s been a really, really strong year with sales up about 30%, prices up about 15% and a lot of momentum going into 2022,” said Brendon Ogmundson, chief economist at BC Real Estate. Association on activity in the northern half. of the province.

According to the BCNREB, while new listings have remained stable throughout 2021 compared to previous years, very high sales activity has driven active listings to the lowest level since the records started in 2000.

These factors drove the sales-to-active listings ratio to record highs in 2021, surpassing the frenzied market activity of 2005-2006, hitting a record 40% in March. This, in turn, pushed up the average selling price in northern British Columbia by 17.6%, from $ 325,615 in 2020 to $ 382,786 in 2021.

Ogmundson said he expects the market to continue to prosper for at least the beginning of 2022 before an interest rate hike or the end of the pandemic trend of more people than ever moving away. large city centers does not help matters.

All of these factors have an impact on supply, which is currently outstripped by demand and has been for some time.

Housing markets in the north ended the year with a sales trend of around 25% above long-term average levels, which portends an early start until 2022. Unfortunately, the region will also start. the year with extremely low supply, which means continued upward pressure on housing. prices.

When it comes to relief for homebuyers, don’t expect significant relief until 2023 according to Ogmundson.

Leave a Reply

Your email address will not be published. Required fields are marked *