Sales in Greater Vancouver decline, causing Provincial averages to dip.
Recent numbers gathered from October show major decreases across the board for province-wide real estate figures, with experts citing the decrease in activity in the Lower Mainland as the main culprit.
In a report released by the British Columbia Real Estate Association (BCREA), residential sales in October were down by nearly 17 per cent compared to the same month last year. Also falling in October were the total sales dollar volume, down by nearly 25 per cent, and the average residential price, which declined by 9 per cent when compared to the same month last year.
The new provincial and federal real estate measures, including the foreign buyers tax and new mortgage rules, are likely major contributing factors to this decrease. Despite seeing a drop in numbers, the cooling of Vancouver’s red hot real estate market is not necessarily all bad news.
“Housing demand remained mixed across the province in October,” said Cameron Muir, BCREA Chief Economist. “Home sales across the Lower Mainland were down from the elevated levels of one year ago, but stabilized on a month-to-month basis.”
While the numbers in the Lower Mainland are showing a clear dip, home sales on Vancouver Island and in the interior of the province continue to post strong year-over-year gains. Provincial averages however continue to be skewed due to the large number of sales that were happening in Metro Vancouver one year ago.
“The decline in the average residential price reflects a smaller proportion of transactions in the province originating in Vancouver,” added Muir. “Home sales through the Real Estate Board of Greater Vancouver fell to 31.4 percent of BC transactions last month, compared to 42.6 per cent a year ago.”