Best Mortgage Rates in British Columbia

British Columbia Mortgage Market: A Beautiful Challenge

Breathtaking BC, Desirable Living – But Tougher on the Wallet

British Columbia’s housing market sprang back to life in October 2024, as buyers returned in droves, spurred by declining interest rates and a desire to secure homes ahead of an anticipated bustling Spring 2025 market.

In a remarkable turnaround, BC home sales jumped by 26.2% year-over-year, a stark contrast to September’s 1.8% decline. Victoria led the charge with a massive 54% sales increase, while Vancouver Island, Fraser Valley, the Greater Vancouver Area (GVA), Northern BC, and Chilliwack followed with gains ranging from 24% to 33%. Not bad for what’s traditionally a slower month in real estate.

While sales activity surged, the province’s average home price dipped slightly to $974,949 (from $969,959 the previous month), primarily due to price declines in higher-end Greater Vancouver. However, many BC regions saw price growth, with Chilliwack and Vancouver Island leading the way at 6.5% and 3.7%, respectively.

Balanced Markets with Local Exceptions

Listings remain mixed across BC, contributing to an increase in the province’s sales-to-new-listings ratio (SNLR) to 51%, signaling balanced conditions in most markets. However, Vancouver Island and Northern BC remain entrenched in seller’s territory. Provincial policies, such as restrictions on short-term rentals and empty homes, are aimed at increasing housing availability, potentially easing some pressure on supply.

Housing Starts Decline

Despite the uptick in sales, housing starts continue to decline across the province. Year-to-date figures show a notable drop of 18% in Vancouver, 27% in Nanaimo, and 14% in Victoria. These declines further constrain supply in a market already struggling to meet demand.

The Affordability Challenge

BC’s higher-than-average home prices, coupled with elevated mortgage rates, create significant challenges for first-time buyers, particularly in Greater Vancouver and Vancouver Island. While declining interest rates may bolster demand, investors and homeowners facing rising mortgage renewal payments may contribute additional listings, creating opportunities in some markets.

Looking Ahead

With interest rates projected to decline further, BC’s housing market may see increased demand, potentially tipping more markets into seller’s territory. Whether you’re a first-time buyer or a seasoned investor, now is the time to evaluate your options and secure the right mortgage to navigate BC’s competitive market.

Source: Sagen Housing Market Updates