It appears the continuing erosion of affordability is taking its toll in Vancouver with fewer people buying real estate while listings grow. So far 2008 has seen the slowest start of a year since 2003, not just in Vancouver, but in BC as a whole:
Cameron Muir with the B.C. Real Estate Association says it’s a trend that’s showing up all over the province. The average residential price in B.C. climbed to $478,000 in January, up 15% from last February. Muir says prices are still rising, but not as fast as we’ve seen in the last couple of years, and that could balance things out in the months to come.
So why are we seeing this change now?
A weak U.S. economy and lower demand for B.C. lumber are just a couple factors for the drop. But Muir says fewer home sales and the increase in active listings may actually be balancing the B.C. housing market.
Thanks to Reductimat for the link.