The Vancouver real estate market has been one of the most active in Canada for many years. This June, however, instead of the unrelenting climb that has taken place for so long, sales activity actually ducked below the long-term averages for the month. The ongoing trend of decreasing sales in the city resulted in a three-year high for available listings in the summer month.
Sales throughout the Greater Vancouver area hit 2,425 for the month of June. This was a serious drop off from the 3,893 homes sold in June of 2017. With declines in sale figures of 37.7% year-over-year and 14.4% month-to-month, it seems safe to say that the market in Vancouver is starting to cool somewhat.
New Listings Down While Total Inventory Surges
With declining sales activity, sellers seem less inclined to enter the market currently in Vancouver. 5,279 homes came up for sale during the month of June. This was a year-over-year decrease of 7.7%. However, due to the ongoing decline in sales figures, inventory in Vancouver is growing despite the decline of new homes coming up for sale.
Total inventory in the city hit 11,947 by the end of the month. This was a year-over-year increase of 40.3%. That kind of year-over-year rise represents an ongoing trend rather than the more typical seasonal variations that might be seen in new listings. However, even when comparing May to June, there was a 5.8% increase in available listings on the market.
Prices Growing More Slowly in Vancouver
One of the largest problems facing buyers in Vancouver over the past several decades has been unchecked and rampant price increases. While prices are not yet on the decline, they are now growing much more slowly, especially in the detached home category. Single-family homes sit at a current benchmark price of $1,598,200. This is only a 0.7% year-over-year increase, and is actually a slight decrease of 0.6% when compared to May of this year. However, condo prices continue to rise—the new benchmark of $704,200 is 17.2% higher than the price in June of last year.
Policy changes that have been put in place partly in order to cool the Vancouver real estate market appear to be having their intended effect. Although prices are still climbing upward, they are doing so at a pace that is a fraction of the growth seen in the past several years. If inventory continues to grow in the city, power is likely to shift even further in the direction of the buyer. This may eventually serve to make the Vancouver real estate market more accessible to a wider range of buyers than it has been in several years.
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