Vancouver Island September Home Sales in Vancouver Drop

October 8, 2016 Market Conditions

Just two months after the BC Government applied a 15 per cent tax to foreign buyers of property in the city, home sales in Metro Vancouver have dropped by one-third. The Real Estate Board of Metro Vancouver released their September statistics, showing plunging sales by 32.6 per cent compared to this time last year.

The board shows there were 2,253 homes sold last month, a steep drop from the 3,345 home sales recorded in September 2015.

Although sale numbers have dropped, prices have yet to budge, with only a 0.1 per cent decline in price compared to August 2016.

Board chairman Dan Morrison remarks that uncertainty in the city’s real estate market has lead to the sudden drop, and homebuyers and sellers are having trouble establishing prices as a result.

While the tax is creating a moderating trend in activity in the Vancouver market, it seems the slowdown is not significantly affecting the VIREB area thus far.

In a report published by VIREB, statistics show that sales decreased by 14 per cent compared to August numbers. However, experts in the industry remark that it is still too early to say whether this is a temporary cooling in sales activity or indicative of a larger trend.

Continued low inventory levels of homes are also said to be a factor in lower sales numbers on Vancouver Island.

“Sellers are in the driver’s seat right now, and sales would be higher if there were more homes available,” said Margo Hoffman, 2016 VIREB President.