Vancouver's real estate market had a busy March but buyers are still having to pay up to put a roof over their heads.
The Real Estate Board of Greater Vancouver (REBGV) says 4,344 homes were sold during the month, which is 26.9 per cent more than the 3,424 that changed hands in February.
But it was a 23.9 per cent drop from the 5,708 homes sold in March 2021.
"March of 2021 was the highest-selling month in our history. This year's activity, while still elevated, is happening at a calmer pace than we experienced 12 months ago," said REBGV chair Daniel John.
"Homebuyers are keeping a close eye on rising interest rates, hoping to make a move before their locked-in rates expire."
The Bank of Canada raised its benchmark interest rate for the first time since 2018 in March. Its next interest rate announcement is on April 13, when some economists expect Canada's central bank will hike by 0.50 per cent instead of its previous 0.25 per cent increase.
Waiting for home prices to fall
Buyers had more options in March as more supply hit the market. The total number of homes for sale was up 13.1 per cent compared to the previous month.
However, there were 16.6 per cent fewer homes available for sale compared to March 2021 and supply remains tight.
"We're still seeing upward pressure on prices across all housing categories in the region. Lack of supply is driving this pressure," said John.
"The number of homes listed for sale on our MLS® system today is less than half of what's needed to shift the market into balanced territory."
The benchmark price for all types of homes was up 3.6 per cent month-over-month and 20.7 per cent year-over-year to $1,360,500.
Prices went up the most for attached homes, with a benchmark price that's up 4.4 per cent month-over-month and 28.1 per cent year-over-year to $1,138,300.
Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.