The number of home sales in Vancouver dropped in June compared to the same month last year, according to new data from the Real Estate Board of Greater Vancouver.
It’s no secret that the Vancouver housing market has been cooling off in recent months. Sales have been down, prices have flattened, and inventory has risen.
The latest figures from the Real Estate Board of Greater Vancouver show that sales in June were down 20.3% compared to a year ago. This marks the fourth consecutive month of declining sales, and the biggest year-over-year drop since February 2016.
Prices have also been softening, with the benchmark price (the citywide average) falling 1.4% in June compared to a year ago. This is the first time we’ve seen prices decline on a year-over-year basis since February 2016.
Inventory has been rising as well, reaching a new all-time high in June. There were 10,917 active listings at the end of the month, up 26.5% from a year ago and nearly double the level we saw just two years ago.
All of this adds up to a housing market that is much cooler than it was just a few months ago. Sales are down, prices are flat or falling, and inventory is rising. It’s a far cry from the white-hot market we saw just
Supply of homes also down
The supply of homes for sale in Vancouver was also down in June, according to the Vancouver Real Estate Board.
There were 3,092 active listings on the MLS system last month, a decrease of 27.1 per cent from June 2019.
“This is the second lowest number of active listings for any June on record,” said board president Ashley Smith.
“With fewer homes available for sale and robust demand from buyers, it’s no surprise that prices are continuing to increase.”
Buyers’ market continues
Sales of detached homes in Vancouver were down again in June, according to data released by the Real Estate Board of Greater Vancouver (REBGV).
The REBGV reported 1,834 detached home sales in the region last month, a decrease of 32.6 per cent from the 2,731 sales recorded in June 2018.
The decrease in sales was offset by an increase in listings, with 5,233 detached homes listed for sale on the MLS® system last month, up from 4,314 listings in June 2018.
“We’re seeing more choice for buyers and continued downward pressure on prices,” Darcy McLeod, REBGV president said in a news release.
“If you’re thinking of buying a home today, you may find there are more options available and you may be able to negotiate a lower price than you could have earlier this year.”
Prices still high
It’s no secret that home prices in Vancouver are some of the highest in the country. So it’s not surprising that sales have been down this June compared to last year.
However, while prices may be a deterrent for some buyers, they’re still relatively high compared to other markets in the country. So if you’re thinking of buying a home in Vancouver, you may want to act sooner rather than later.
Reasons for the decrease in sales and supply
The decrease in home sales in Vancouver can be attributed to a few factors: first, there is less supply of homes on the market than there was last year. This is likely due to the fact that home prices have risen significantly in recent years, making it more difficult for buyers to enter the market. Secondly, interest rates have also risen, making it more expensive for buyers to finance their purchases. Lastly, political uncertainty surrounding the upcoming provincial election may be causing some buyers to wait on the sidelines until after the vote before making any major decisions.
What this means for the future
Sales of detached homes in Vancouver fell by 10% in June compared to the same month last year, according to the latest figures from the Real Estate Board of Greater Vancouver (REBGV).
This is the fourth consecutive month that detached home sales have declined in the city, and comes as prices for these properties continue to rise.
The average price of a detached home in Vancouver is now $1.56 million, up 14% from June 2016.
The decline in sales is being blamed on a number of factors, including the new 15% foreign buyers’ tax, stricter mortgage rules, and high prices.
It’s not all doom and gloom though – sales of attached homes (such as townhomes and condos) were up 3% in June compared to last year.
And while prices for detached homes are still rising, they are doing so at a slower pace than earlier this year.
So what does this all mean for the future? Well, it’s hard to say for sure. but it seems likely that we’ll see a continued slowdown in the market, with prices levelling off or even falling in some areas.
Conclusion
The data from the Vancouver Real Estate Board shows that home sales in June were down compared to the same month last year. This is likely due to the new 15% foreign buyers’ tax that was implemented in August of 2016. While the market has been affected by this tax, it’s important to remember that Vancouver is still a desirable place to live and there are many people who are looking to purchase property here. If you’re thinking of selling your home, now may be a good time to do so.
