Metro Vancouver’s benchmark home price dips below $1M in June

Real Estate Board of Greater Vancouver says region seeing an ‘expectation gap’ vs. buyers and sellers

Homes in Vancouver, Tuesday, Apr 16, 2019. (THE CANADIAN PRESS/Jonathan Hayward)

Metro Vancouver’s once hot housing market is experiencing an “expectation gap” between buyers and sellers as the benchmark property price fell under $1 million for the first time since May 2017.

“Sellers are often trying to get yesterday’s values for their homes, while buyers are taking a cautious, wait-and-see approach,” Ashley Smith, the real estate board’s president, said in a statement.

The composite benchmark price for detached houses, townhomes and condos in Metro Vancouver was $998,700 in June, said the Real Estate Board of Greater Vancouver. That’s down 9.6 per cent from the same time last year and 0.8 per cent from May.

Detached houses saw the biggest drop, falling 10.9 per cent from June 2018 to $1,423,500. However, the price inched forward month-over-month, up 0.1 per cent since May.

Townhomes fell 8.6 per cent to $774,700 and condos dropped 8.9 per cent to $654,700. Both also saw month-over-month drops with townhomes losing 0.6 per cent and condos 1.4 per cent compared to May.

Prices dropped as the area recorded the lowest number of home sales last month than any June in nearly two decades.

READ MORE: Government policies weigh on declining B.C. housing market, report says

The board says 2,077 homes sold in June 2019 — down 14.4 per cent from the same month last year, down 34.7 per cent from the 10-year June sales average and the lowest June total since 2000.

Condos experienced the biggest slow down. In June, sales of condos fell 24.1 per cent compared with a year ago to 941. Meanwhile, townhome sales last month dropped nearly seven per cent and detached home sales fell 2.6 per cent compared with June 2018.

The number of newly listed homes also fell, dropping 10 per cent from June 2018 to 4,751 homes across all categories. However, the total number of homes listed for sale rose 25.3 per cent from June 2018 to 14,968 homes in June 2019.

The sales-to-active-listings ratio, a key measure that indicates whether it’s a buyers’ or sellers’ market, was 13.9 per cent for all property types in June. It dropped to 11.4 per cent for just detached homes, but rose to 15.8 per cent for townhomes and 15.7 per cent for condos.

A ratio under 12 per cent for a sustained period suggested downward pressure on home prices will occur, while upward pressure is expected when the ratio exceeds 20 per cent for several months.

“Home buyers haven’t had this much selection to choose from in five years,” said Smith, adding sellers need to price their homes accordingly to be successful in the current market.

The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

‘One Night Out’: Sleeping outside in Surrey for youth homelessness

In 2018, 200 people spent the night sleeping in a parking lot for restaurant franchise’s fundraising effort

PHOTOS: White Rock marks Remembrance Day

Hundreds of people gathered Monday morning to give thanks to veterans

VIDEO: One injured in north Surrey shooting Sunday

Male victim taken to hospital with non-life threatening injuries

Surrey veteran talks about the emotional side of war

Reginald Wise served in the Royal Marines in WWII

VIDEO: Quidditch Canada’s Western Regional Championship flies into Surrey

Harry Potter-inspired event is at Hjorth Road Park

VIDEO: Hong Kong police shoot protester, man set on fire

It was the second protester shot since the demonstrations began in early June

Sportsnet fires Don Cherry after negative comments about immigrants

Don Cherry had said immigrants don’t wear poppies like other Canadians do

Trudeau’s new cabinet: Gender parity because it’s 2019? Or due to competence?

Prime Minister Justin Trudeau will soon appoint his new cabinet

Coquihalla drivers urged to be careful amid freezing rain alert

Special weather statement in effect for highways between Hope, Merritt, Kamloops and Kelowna

Canada among three G20 countries least likely to hit emissions targets

It says Canada, South Korea and Australia are the farthest off

Conservatives’ Scheer wants Trudeau to open Parliament Nov. 25

That’s five days after Justin Trudeau is scheduled to swear in a new cabinet

14 SeaBus cancellations, free rides for veterans from TransLink on Remembrance Day

Free rides also available for current Armed Forces members, first responders

Last remaining Centurion tank from the Korean War makes its journey ‘home’ to B.C.

Tank arrives in B.C. the day before Remembrance Day after a more than 4,500-kilometre transfer

‘Your vehicle burns a lot of fuel:’ Victoria drivers wake up to angry notes

‘This handbill was left on your vehicle because your vehicle burns a lot of fuel,’ notes read

Most Read