Royal LePage CEO Phil Soper says Vancouver home prices grew 30.6% year-over-year in the third quarter, marking what he says may be the local market’s final hurrah.
The average house price in the region hit $1.19 million in the quarter that ended September 30th, up from $914,705 from the same quarter last year.
However home prices nationally, which includes Vancouver, and also the red hot Toronto market, were only up 12% from a year earlier, to an average price nation wide of $545,000.
Soper says home sales in Vancouver dropped 32.6% in September compared to September of last year, and sales were already declining long before the tax was implemented, as many local homebuyers had already gone to the sidelines given the expensive cost of housing.
Soper goes on to explain that normally there is a six-month lag between a change in demand, which has definitely taken place here in Vancouver, and prices catching up with that change.
LISTEN: Vancouver real estate today
However, he says that the catalyst or tipping point may just have been the foreign buyers tax.
This could very well be an action other than political that the BC government might, in retrospect, not wanted to have taken.