Residential property sales in Greater Vancouver suffered a huge drop in July, according to new figures from the Real Estate Board of Greater Vancouver.
The reports show that 3,226 homes were sold in July, compared with 4,400 homes in June – a drop of 26.7% in one month. In spite of the fact that mid year is generally thought to be a moderate time for home sales, the figures are additionally 18.9% down from July a year ago, when 3,978 homes were sold.
Dan Morrison, president of the board, said the shift signals a return to more normal levels.
“After several months of record-breaking sales activity, home-buyer demand returned to more historically normal levels in July,” Morrison said in the statement
He noted that home sales activity showed ‘moderating’ signs in late June, which carried into July.
“We’ll wait and watch over the next few months to see if this marks the return of more normal market trends.”
Meanwhile, the sales-to-active listing was 38.6%. Investigators say house value tends to drop when the ratio dips beneath the 12% mark.
Notwithstanding the home salesdig in July, costs rising since a year ago.
The benchmark cost for all private properties in Metro Vancouver is $930,400, a 32.6% increment over July 2015, while the normal cost for a detached home was $1.57 million, up 38% from July 2015.
Apartment suite costs were likewise on the rise. The normal cost in July 2016 was $510,600 a 27.4% increase from July 2015. It remains to be seen whether the recent extra 15% property transfer tax imposed on foreign buyers in Metro Vancouver will have any effect on home sales.