The British Columbia housing market is beginning to show early signs of recovery. While some of this activity can be attributed to the typical seasonal lift associated with the spring market, year-over-year comparisons also indicate measurable improvement.
Although conditions in the Lower Mainland remain relatively soft compared to the Interior, the region is now experiencing its second consecutive month of increasing absorption and sales activity. The Interior markets continue to perform modestly better overall, with certain areas like the North Okanagan, Kamloops and the Kootenays well into balanced market conditions.
One of the most important indicators for assessing short-term future market direction is absorption, which measures the percentage of available inventory that sells each month. This metric is a direct display of supply and demand. As reflected in the stats absorption rates have increased for the second consecutive month across both the Interior and Lower Mainland regions. Sellers are realizing that in order to draw the limited buyer pool they must get more aggressive with their pricing.
While these trends are encouraging, they remain in the early stages and should be viewed with caution. Sustained improvement over the next few months will be required to confirm a clear and stable upward trend.