Category Archives: prices

Sales rise in July but prices slide

We saw and increase in prices last month, but so far that isn’t showing an impact on prices which continue to fall.

That’s according to the latest data from the Real Estate Board of Greater Vancouver (REBGV), which said that despite the bump, sales remained 7.8 per cent below the 10-year July sales average.

“Despite the bump in sales, prices have continued to slide. The benchmark price for a detached home across the region in July was $1.4 million, down 10.5 per cent from July 2018 and down 0.5 per cent from June this year.

Read the full article here.

Next price uptick in 2021?

Central 1 credit union is forecasting further big drops in sales and a “marshmallow soft” market for the next few years.

The province’s median home resale price across the year is expected to decline 4.1 per cent in 2019, then a further 1.2 per cent in 2020. This will be followed by the most meagre of recoveries in 2021 with a 1 per cent rise, which doesn’t even bring the median back to 2019 prices.

The biggest short- to medium-term price declines are expected, unsurprisingly, in Metro Vancouver, said Yu – but this could be what puts the market back on track in the longer term.

“In Metro Vancouver, on a benchmark basis, prices are down around eight per cent and we’re expecting that to fall further, giving us a total peak-to-trough decline of about 12 to 15 per cent. So that will erase a lot of the gains we saw from 2016 onwards. But this should pull some people back into the market.

Read the full article here.

One half year into a decline

It’s not just Vancouver, sales are falling across the nation marking the first March decline since the recession.

Prices fell in seven of the 11 markets in the index, led by a 1.5 per cent drop in the capital region of Ottawa-Gatineau. In Victoria, British Columbia’s capital city, prices were down 1.1 per cent, with Vancouver prices down 0.5 per cent.

Canada’s once-hot housing market has softened since the start of last year, as tighter mortgage rules and five interest rate hikes from the Bank of Canada since July 2017 have curbed buyer spending power.

Read the full article here.

A plan to not help affordability

southseacompany points out this article about Finance minister Bill Morneaus plan to ‘help‘ homebuyers.

“One of the things Finance Minister Bill Morneau did in the budget on Tuesday was to take steps to fix Canada’s home ownership problem. But who told him Canada has a homeownership problem?” 

“Homeownership rates in Canada are among the highest in the developed world. Even among young people, homeownership rates are high compared to our peers with more than 40 per cent of households led by people under 35 owning homes. And yes, even in Toronto and Vancouver, homeownership rates are high relative to those cities’ global peers.”

Read the full article here.