BC Home Sales Slide in March as Buyers Anticipate Rate Cuts

In March 2024, British Columbia witnessed a notable slowdown in its housing market, marked by a 9.5% year-over-year decline in home sales, as reported by the BC Real Estate Association (BCREA).

Despite this, the average home price in BC rose by 6.5% compared to March 2023, reaching $1.02 million. This trend indicates a cautious approach by buyers, potentially waiting for policy shifts from the Bank of Canada (BoC) before making significant investment moves.

Forecasts and Expectations

BCREA’s separate report forecasts a potential initiation of rate cuts by the BoC as early as April, anticipating a response to the market conditions and economic indicators. The association’s analysis indicates strong probabilities of rate adjustments, with financial markets signaling a potential 25 basis points cut during the June meeting, and an estimated 100 basis points cut by the end of December.

BC’s housing market in March 2024 experienced a slowdown in home sales, potentially influenced by buyers’ anticipation of rate cuts by the Bank of Canada. Despite this, the overall first-quarter performance remained positive, with notable increases in sales volume and residential prices. The market’s trajectory in the coming months will likely be shaped by policy shifts and economic factors, emphasizing the importance of monitoring the BoC’s decisions for both buyers and sellers in British Columbia’s real estate landscape.