“Buyers, your time is now,” says real estate agent as house prices fall across region | Photo: Chung Chow
A TD Bank forecast that average BC home prices will fall 8.1% next year seems too optimistic in Metro Vancouver, as June sale prices fell for the third month in a row.
The June compound benchmark price for all Greater Vancouver residential properties was $ 1,235,900, 2% less than in May and a 2.2% decrease over the past three months, the Property Board reports. Greater Vancouver roots.
Single-family home prices are experiencing the biggest drop in the dollar, averaging $ 37,000 a month since March to a June benchmark price of $ 2,058,600.
In the Vancouver West Side market, the average price of a single-family home fell $ 194,000 from May to $ 3,063,500 in June.
“We are seeing downward pressure on house prices as we enter the summer due to declining activity from home buyers, not the increase in supply,” Daniel said John, President of REBGV.
Total home sales in Greater Vancouver amounted to 2,444 in June 2022, a 35% decrease from June 2021 and a 16.2% decrease from the 2,918 homes sold in May 2022.
The Fraser Valley Real Estate Board (FVREB) processed 1,281 sales in June, 5.8 percent less than in May and a 43 percent drop compared to June last year.
“In just two months, our overall market has balanced, mainly due to a decline in demand for single-family homes,” said FVREB President Sandra Benz, who noted the effect of the ‘increase in mortgage rates.
The price of Fraser Valley single-family home fell 3.5 percent, or $ 57,855, month-on-month to a June benchmark of $ 1,653,000, according to the Fraser Valley Real Estate Board.
The Bank of Canada, which has raised its trend interest rate by 75 basis points since March, is expected to raise the rate from 50 to 75 basis points on July 6 to fight inflation.
This will lead to a further drop in home sales and prices, according to TD Bank. In a June 30 report, TD predicted that BC will be seen among the strongest corrections, with a fall in average home prices by 8.1 percent in 2023.
Falling prices and rising supply should be welcomed by home buyers, according to realtors.
“In most areas of Vancouver Metro and especially at higher prices, it’s now a buyer’s market,” said Kevin Skipworth, managing partner of Dexter Associates Real Estate in Vancouver.
He noted that the Vancouver city strata sector was especially attractive due to rising supply and falling prices. The benchmark price of a townhouse in the city fell nearly 2 percent in June from the previous month and condo prices fell 2.3 percent month-on-month, with the biggest drop on the West Side trendy.
“Vancouver’s West Side has seen townhouses and condominiums increase supply five months from three months last year,” Skipworth said. “What a change and an opportunity compared to a year ago. Buyers, now is your time.”