VANCOUVER (News1130) – Looking to buy a condo around Metro Vancouver? New numbers from the Real Estate Board of Greater Vancouver suggest prices have gone down since May.
One Vancouver realtor says the recent drop in condo prices is likely to become a trend. Steve Sarestksy with Sutton Group – West Coast Realty says the decrease is likely due to changes made earlier this year that make getting a mortgage more difficult.
“Once trends set in place, they tend to drag out longer than people anticipate. We’re very used to the last couple years with increasing sales and inventory falling, and now we’re seeing reverse,” he says.
Those looking to get a condo should keep their eyes on the detached market for an idea of where condo prices are heading, he says.
“I think that’s generally a leading indicator. It’s sort of led the market on the way up, and certainly led the market here on the way down,” Saretsky says. “I think that any time you start reducing the availability of mortgages with the stress test, we can certainly see that in some of the Bank of Canada data that, at some point that’s going to start to weigh on even the more affordable market.”
The board puts benchmark price for all types of properties at $1,083,400, which is up 4.1 per cent from August 2017, but down 1.9 per cent since May 2018.
A look at the numbers:
Detached home prices fell 2.8 per cent since May to $1,561,000, which is also down 3.1 per cent compared to the previous August.
Attached home prices fell 0.8 per cent to $846,100 since May, but rose 7.9 per cent compared to August 2017.
Condominium prices also dropped since May by 1.6 per cent to $695,500 — up 10.3 per cent from the same time last year.