The Real Estate Board of Greater Vancouver says home sales are slumping, but prices appear to be levelling off.
President Dan Morrison says home sales in Metro Vancouver dropped 26 per cent in August, compared to the same month last year.
“Keep in mind that a year ago was extraordinary, that was one of the highest Augusts ever on record.”
But the benchmark price in August was $933,000, up 31.4 per cent from a year ago and 4.9 per cent over the last three months.
Morrison says while it’s still a sellers market, prices are levelling off.
“There is not nearly as much pressure on prices, the rate of prices has certainly declines drastically.”
He adds the new foreign buyers tax reduced foreign buyer activity and caused uncertainty among local home buyers and sellers.
Is B.C. feeling the effect of Vancouver’s tax?
As home sales dip in Metro Vancouver, B.C.’s capital saw sales rise by 19 per cent in August compared to the same month last year.
But President of the Victoria Real Estate Board, Mike Nugent, says Vancouver’s foreign buyer Property Transfer Tax isn’t to thank.
“I’ve spoken to some of the brokerages and some of our realtors in the street and they are not hearing stories of large numbers of foreign buyers coming our way. You know really, this is a cycle like other cycles where so many of the economic fundamentals are very strong.”
Nugent says a lack of inventory is putting pressure on home prices.
The benchmark price of a single family home in the Victoria Core is up almost 24 per cent in August compared to last year.
Real Estate in the Fraser Valley on the other hand is slowing down.
Nearly 17,000 sales were processed for the month of August, down by 2.3 per cent compared to the same time last year, and almost a 14 per cent drop from July.
The Real Estate Board says the numbers aren’t alarming; they were to be expected for the month.