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September home sales see drastic drop, prices jump: REBGV

Last Updated Oct 4, 2016 at 8:57 am PDT

(iStock Photo)

The price of a home has increased 28.9 per cent compared to September 2015

New statistics show fewer homes are on the sales block

VANCOUVER (NEWS 1130) – There are more signs Metro Vancouver’s housing market is slowing down. New numbers released from the Real Estate Board of Greater Vancouver show home sales totalled 2,253 last month, which is a decrease from the 3,345 sales that was recorded in September of 2015. That figure also represents a drop compared to August of this year when 2,489 homes exchanged hands.

What’s interesting in these latest numbers is the price of a home is going up. The MLS Home Price Index benchmark for all residential homes across the region is $931,900, which is a 28.9 per cent increase compared to the previous September but a 0.1 drop compared to August of this year.

Realtor Adil Dinani with Royal LePage says home sales may be stalling but it appears condo sales are doing much better. “If you look at the price point under $500,000 — that area of the market is actually very active. Condos and the first-time home buyers segment is still very much in the game.”

The board says last month’s sales were 9.6 per cent below the 10-year sales average for September.

“Changing market conditions are easing upward pressure on home prices in our region,” says Board President Dan Morrison. “There’s uncertainty in the market at the moment and home buyers and sellers are having difficulty establishing price as a result. To help you understand the factors affecting prices, it’s important to talk with a realtor.”

New listings for detached, attached and apartment properties in Metro Vancouver came in at 4,799 last month. That is drop of one per cent compared to the 4,846 units listed in September of 2015 and an 11.8 per cent increase compared to August 2016. “We consider a balanced market, which is the market realtors like, and that’s between 12 and 20 per cent — so, we’re just on the bottom-end of that balanced market. It’s bordering on a buyers market territory,” explains Morrison.

The total number of homes on the sales block is 9,354, which more than 13 per cent lower compared to September of 2015 and a 10 per cent increase compared to August 2016.

These latest statistics come two months after the provincial government implemented a 15 per cent foreign buyers tax. To show you how that works, the sale of a $2 million home would be subject to $300,000 in tax.