Interest rates have increased three times so far this year in Canada, with the overnight lending rate hitting 5% in July. Housing is of course majorly affected by rate hikes, yet despite this, many of British Columbia’s major real estate markets show minimal signs of slowing down. Prices have held steady on a monthly basis in the more expensive markets in the province. Canada’s average national price in June was $709,218, whereas in B.C. it hit $991,648.
With buyers in the province wondering where they can find the greatest affordability, Zoocasa compared the average home prices in July 2023 across major markets in B.C. and calculated the average monthly mortgage payment required for a home at the average price in each city.
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Buyers Should Look Outside of Vancouver for Greater Affordability
Many of the major markets in B.C. have average home prices well above the provincial average of $991,648. A home in Greater Vancouver currently costs an average of $1,120,700, in Coquitlam it’s $1,135,300 and in Richmond, a home costs an average of $1,188,300. Outside of the major cities, however, you’ll find a lot more opportunities for affordable homes.
The most affordable market we covered is Kamloops, where a home currently costs an average of $539,833. This is over $450,000 in savings compared to the provincial average. Kamloops’ affordability is a real standout when compared to other markets in British Columbia, as the only one we covered with a home price lower than $600,000, but homeowners can still expect an average monthly mortgage payment of $3,102.
With an average home price of $679,700, Sooke is the second most affordable market. It’s the only other market with a home price below the national average, and homeowners can expect to pay $3,866 a month towards a mortgage on a home at the average price.
Buyers looking towards Campbell River should note that average home prices have actually increased on a yearly basis, up 1.38% to $738,631. Not only is it more expensive than the national average, showing the lack of affordability in the province, but mortgage payments break the $4,000 mark here, with buyers facing average monthly mortgage payments of $4,187.
Colwood, while the most expensive on our list, is still much more affordable than the provincial average, with home prices over $200,000 less. The average in the city is $784,333, down 4.36% on a yearly basis, the largest decline seen in the markets we covered. Homebuyers would pay approximately $4,438 a month towards their mortgage on a home a the average price.
Are you looking to buy real estate in B.C.? Give us a call! Our experienced real estate agents will help you find the right home for you.
