2022 vs. 2025: How Affordable is the Housing Market?

As you know, the market in March 2022 was one of the most challenging affordability moments we’ve seen in years. Buyers were dealing with:

• Record-high home prices
• Historically low inventory and intense bidding wards
• A low mortgage stress test rate of 5.25%
• And because prices were higher, even those very low interest rates meant higher mortgage sizes and higher monthly payments

By contrast, September 2025 showed us a completely different landscape, and in many ways, more affordable for the average home buyer in the Kamloops area.

What’s changed?

1. Home prices have come down from 2022 peak levels

Prices across BC (including Kamloops) are no longer sitting at the record-breaking highs we saw in early 2022. Even modest softening makes a major difference in mortgage size and qualification.

2. Today’s interest rates = higher than in 2022, but paired with much lower purchase prices

Affordability is a combination of both price and rate.

A buyer purchasing at a lower price today with a rate in the high-3s to mid-4s typically has a lower monthly payment than someone who bought at 2022 pricing with a 2.99% rate.

(Yes, even with a higher rate, the smaller mortgage amount almost always wins.)

3. Buyers aren’t competing with multiple offers anymore

Less pressure =

• More time to shop
• Ability to include subjects
• Stronger negotiating power

4. Qualification is easier today than in 2022’s pricing environment

Because the loan amounts are smaller, buyers are stress-testing at a lower total mortgage, making approvals much more attainable, especially for first-time buyers or single-income borrowers.

See the Example comparing March 2022 vs September 2025

Let’s dive into an example of the March 2022 Benchmark Price versus the September 2025 Benchmark Price for a Single-Family Home in the Kamloops & District Region.

March 2022 - The 'Then'

September 2025 - The 'Now'

The Result: Buyers today can often achieve a similar (or better) monthly payment at a lower purchase price without the frenzy of 2022.

Why this matters for you right now

Many buyers are still mentally living in “2022 fear mode,” assuming the market is unaffordable.

But with the following, it’s a great time to get into the market (see the comparison below):
✔ Lower pricing
✔ Stabilizing interest rates
✔ Better selection & less competition
✔ Lower total mortgage amount
✔ And significantly calmer conditions

Bottom line: Your purchasing power is greater today than over the past few years, and now is a great time to get into homeownership.