Abbotsford home prices continue to weaken in October
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ABBOTSFORD — The benchmark price of a home in Abbotsford continued to slide last month as rising interest rates continued to cool the market. According to figures released by the Fraser Valley Real Estate Board this week, the price of a single-family detached home fell 2.5 per cent from September to October, dropping to $1,121,300. That’s down over $400,000 or 26 per cent since the market peaked in March.
When the Bank of Canada raised its interest rates by half of a percentage point October 26, it acknowledged the effects of recent increases are becoming evident in interest-sensitive areas of the economy such as the housing market. In a statement, it suggested rates will continue to rise, putting more downward pressure on housing activity.
“Given elevated inflation and inflation expectations, as well as ongoing demand pressures in the economy, the Governing Council expects that the policy interest rate will need to rise further.”
With 53 sales over the course of October, activity was up nearly 40 per cent from September, but the Abbotsford market was more than 50 per cent slower when compared to October of 2021 when the market was heating up.
