Sales Slow In the Country’s Costliest Real Estate Market
Vancouver area house sales saw a steady drop in July. On the other hand, the short supply of properties on the market has led to price rise almost a year after the B.C. government put a foreign buyers’ tax to curb the once-hot market.
On August 14, 2017, British Columbia Real Estate Association published data that reveals the sink in the number of houses sold across Metro Vancouver in the last month compared with July 2016, and the growth in the prices.
In July 2017, in total, 3,012 houses were sold across Vancouver – an 8.8% depression compared to 3,301 homes sold a year ago. However, the region witnessed price rise, with the average outreaching $1,029,786. This inclines that year-over-year, there is a 2.2% spike in the home prices.
July Statistics – Image Source: rebgv.org
The Prices Do The Talking!
Last month, prices augmented across all regions of British Columbia. Vancouver, the most populous city of British Columbia, made highlights with 18% price hike over the year, hitting an average of $452,353. The average home price upturned 11% to $644,510 in Victoria. The South Okanagan region and Kamloops were up by 9.5% to $415,720 and 8.1% to $367,303 respectively.
More Balanced Market Conditions Expected Before 2017 Ends
BCREA chief economist Cameron Muir stated, “Strong economic growth, an expanding population base and a lack of supply continue to drive B.C. home sales and prices this summer.” Though, he added that the decline in sales and consistent rising inventory has been easing the harsh market conditions experienced lately.
“Home sales have edged back 4% since May, with active listings beginning to bounce back from a 20-year low”, Cameron Muir stated. “If these trends continue, it may signal that more balanced market conditions could emerge before the end of the year.”
All over British Columbia, the number of homes sold diminished 6.3% year-over-year, with 9,275 homes sold in the month in total.
Repeat House Sales Ascent Last Month
The Teranet- National Bank Composite House Price Index indicates a 7.8% increase in repeat house sales and 8.56% year-over-year across Metro Vancouver last month. This indicates price modifications for repeat single-family houses’ sales.
The year-over-year progress was beneath the national average upsurge of 14.17%. The upturn country-wide was driven by growth in Toronto, however, according to Teranet, Vancouver’s growth is slowing as non-condo properties’ prices are tumbling.
According to the real estate board’s president, Jill Oudil, the demand for housing in Vancouver now differs by property type and location, with some parts of the real estate market still witnessing bidding wars.
There is only 0.3 per cent increase in the number of properties newly listed for sale from last year. If we talk about the sales-to-active listings ratio, the figure is 32.2 %.
According to sources, when the ratio is above 20% for many months, house prices often experience skyward pressure.