With summer around the corner, we are taking a look at the factors at play in today’s shifting real estate market. The increased cost to borrow money, the seasonal ebbs and flows of the market, and the normalizing of real estate post-COVID, all play a part in our current market conditions.
The last interest rate increases were in 2018. In July of 2018 the Bank of Canada raised Prime from 3.45 to 3.7 and later to 3.95. As borrowing costs rose, real estate sales decreased. With the recent rise in rates, 2022 is on a similar trajectory as 2018 did for sales. Interestingly, sales numbers for the month of May in years 2018, 2019 and 2022 are similar, further demonstrating a return to pre-COVID market conditions.
While world events sent us scrambling to adjust our lifestyles in 2020, the unpredictability of the last two years is finally, almost behind us. As such, the real estate market will return to its seasonal ebbs and flows, barring any further unforeseen world events.
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.