To summarize, the effect of rising interest rates for mortgages is cooling the residential housing market. Generally, sales are taking longer which, in turn, increases the number of listings on the market. More new listings are appearing while the number of sales are decreasing, this also results in a growing number of listings on the market.
Buyers have more selection, more time to decide and more opportunity to present conditional offers.
Are prices falling? Perhaps some sellers are "panicking" and accepting less, however, I feel it's a bit early to make the judgement that prices are coming down. Perhaps statistics will show average selling prices are declining but this may be because more lower priced homes are selling than higher priced homes resulting in average prices appearing to be less than before.
Here's the latest report from the BC Real Estate Association (BCREA) economist. To view the video click here... Housing Market Update.
To see the charts, click here.