It’s a slow spring for B.C.’s housing market, but prices have begun inching up

B.C.’s housing market is experiencing a sluggish spring when it comes to sales and inventory, but that’s propelling prices back up in some markets, like Metro Vancouver and the Fraser Valley.

According to the B.C. Real Estate Association’s second-quarter housing forecast, the market is stuck in a “low-activity equilibrium,” characterized by below-normal sales and listings.

Sales are about 25 per cent below what is typical in the spring market. Listings are also lagging behind.

“An uptick in home sales to start the spring, despite still high mortgage rates, indicates how much pent-up demand there is in the market waiting to be unlocked,” said Brendon Ogmundson, the association’s chief economist. “With the Bank of Canada on hold and fixed-mortgage rates still stubbornly high, home sales are unlikely to fully normalize this year.”

That could lead to upward pressure on prices, with the association forecasting a rise in home prices this year, but still down about six per cent from a record high in 2022.