According to information gathered by Toronto-based real estate search site Zoocasa, Vancouver homebuyers are losing out on their down payments.
The site says homebuyers in most Canadian cities, who made down payments last February, saw healthy returns on their investment.
But now it doesn’t look good for Vancouver where average home prices dropped from $1.1-million this time last year to just under $1-million this year.
Using figures from the Canadian Real Estate Association, Zoocasa says a 20 per cent down payment on an average Vancouver home would have cost around $220,000, but today it’s just under $200,000.
Realtor Steve Saretsky says the numbers are skewed.
“I think it’s a little but distorted in terms of the numbers they pulled, it’s obviously combining the three markets…detached condo and townhouse markets. That whole number gets pushed down because what we’ve seen is the prices of detached homes have dropped and that’s where we are seeing most of the price declines.”
Based on year over year average home price calculations, Vancouverites lost 49 per cent of their return.
“Definitely don’t think it’s time to panic. If you purchased a condo in February 2016 like the report says, you most certainly would have made money. For the town houses, those are still up,” says Saretsky.
Toronto saw the highest return at 139 per cent.