Another sharp decline in real estate activity in the Lower Mainland.
Dan Morrison with the Real Estate Board of Greater Vancouver says the changing market conditions, compounded by a series of government interventions, are putting buyers and sellers in a holding pattern.
October saw over 2,200 homes change hands, which represents a 38% plunge compared to last October, and 15% below the ten-year sales average.
The number of sales were also a slight decrease compared to September, just under 1%.
The REBGV says the detached market is the hardest hit, with home buyer demand dropping lower and lower.
Morrison suggests that with time, there will be added pressure on stubborn sellers who still want full value on their homes.
He also adds that with fundamentals, the market will stabilize as opposed to crash.
“I’m fairly optimistic that we’re going to be fine, that there’s no big crash coming or a big bubble that needed to be burst.”
Prices, on the other hand, remain high. The benchmark price of a single family detached home now sits at just over $1.5-million, up about 30% from October last year, though down 1.4% from last month.
The benchmark price for all homes sits just above $900,000, up about 24% from last year, but down 0.8% from last month.
Since the province’s foreign buyer’s tax was introduced in the beginning of August, sales have now declined almost across the board in the months of September and October.
Fraser Valley stable
Meanwhile, Greater Vancouver’s loss is the Fraser Valley’s gain, with some modest increases in real estate activity.
While October’s numbers were down 17% compared to last year, they up 12% compared to last month.
Townhouses and apartments were the biggest beneficiaries, with the transactions up 10% and 56% respectively compared to last October.