Rising interest rates ‘normalize’ housing market

Concerns over inflation and the resulting increase in interest rates sparked by the Bank of Canada have worked to cool down housing sales in our region. The Victoria Real Estate Board’s latest statistical analysis shows 35% fewer homes were sold in June compared to the same month last year. There are more listings on the market allowing it to settle into a more typical pace than the frenzied conditions experienced during the pandemic.
 
However, the benchmark value for homes continued to increase to $1,464,400 in June from $1,446,400 in May.
 
“It may seem counterintuitive to continue to talk about the need for supply at a time when inventory is rising,” VREB President Dinnie-Smyth said in a news release. “We must keep the conversation alive, and we urge all levels of government to continue to aggressively address the housing supply situation. We need more supply of all types of housing.”
 
A lack of housing supply is a major factor in the challenge many employers face finding and keeping workers.
 
“We are always advocating for more affordable housing and housing supply, as well as security and sustainability in supply chains to get the needed materials in place to create housing,” Chamber CEO Bruce Williams told the Times Colonist.