With Lower Mainland home prices rising, more and more potential home buyers are looking outside of the region.
According to a new report from real estate listing website Zoocasa, the five most affordable cities to buy a home in B.C. are Kamloops, Kelowna, Campbell River, Sooke and Colwood.
Released Thursday, the report says the province's average home price sits at $991,648, whereas in Greater Vancouver, the average price for a home climbed to $1,120,700 for the month of June 2023. And while across Canada, the average home price is much lower at $709,218, in Kamloops, homes are selling at an even lower average price point of $539,833 as of July 2023, according to the report.
“This is over $450,000 in savings compared to the provincial average,” said the report. “Kamloops’ affordability is a real standout when compared to other markets in British Columbia...”
Of all the B.C. markets the report looked at, Kamloops was the only one with a home price lower than $600,000, though homeowners can still expect to pay an average monthly mortgage payment of $3,102.
Critics say price increases in the real estate sector have been spurred on by low housing supply in B.C.’s major cities. Meanwhile, the Bank of Canada’s multiple interest rate hikes have resulted in the highest interest rates in over a decade, according to the British Columbia Real Estate Association.
On Vancouver Island, Sooke is the second most affordable city in the province with an average home price of $679,700 for July 2023. This represents savings of $311,948 compared to the provincial average.
“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,” said the report.
Campbell River, Kelowna and Colwood are all above the national average but remain below B.C.’s average home price. According to the report, these price discrepancies demonstrate the level of unaffordability in the province.