While Metro Vancouver’s home prices remain high, the price of single-family homes in two rapidly growing markets in the area has seen a sharp decline recently, according to one industry group.
HouseSigma uses AI to compare history lists and measure current values in real time. Its latest data compares prices from February and May 17, 2022.
In Surrey, inflation has dropped from $ 1.9 million to $ 1.59 million – down 16.3 percent. In Langley, prices have dropped from $ 1.75 million to $ 1.5 million – a decrease of 14.3 percent.
While high interest rates are said to cool the market by B.C. other than that, HouseSigma agent Hao Li says there may be some play in these two areas. As people moved out of the city in search of affordable housing, population growth increased prices. Now, Li says the need has eased.
“One of the reasons it is declining so much is because it has been rising faster in those two cities compared to other cities in Greater Vancouver over the past two years,” he said.
“We can predict that prices and sales volume will decline initially. But as time goes on, we will become more stable.”
In markets and seasons like this, Li says, negotiation becomes something that buyers and sellers start to focus on.
While Surrey and Langley showed only a two-digit decline, the average number of single-divided households was declining everywhere except Richmond and West Vancouver.
The latest data from the British Columbia Real Estate Association states that a sharp rise in mortgage rates slowed the sale of provincial housing “on the road to normalcy,” although it estimates that a balanced market remains at least a year old.
According to the Fraser Valley Real Estate Board, April 2022 marked the first time regional sales had dropped below the average of 10 years,
“We used to see chaos at this time of year,” FVREB president Sandra Benz said in a statement.
“However, this is not the case so far. Although it is too early to say whether the trend will continue, the decline in sales combined with the increase in active lists helps to restore market equity, which is encouraging for home buyers. ”
The Board also said an increase in borrowing rates may reduce the need but “lower assets” mean that prices will not fall sharply.
The average amount of time the market lived last month in the Fraser Valley was 16 days for a private home and 13 days for a town or apartment.
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