Vancouver is going through significant changes but the real estate market is not moving in unison. As detached home prices go through a slowdown, new home listings and sales on the other hand have been on a rapid decline.
This situation leaves the city indecisive and according to figures from the Real Estate Board of Greater Vancouver, inventory is not growing as fast as sales which create an imbalance in the city.
The price for detached homes in the Greater Vancouver area have been stagnant from last month which still stands at $1,474,200 which is a 14% rise from last February but this figure indicates a 6.5% decline for the past six months.
However, taking a look at the entire region, Bowen Island, Ladner and West Vancouver had figures that are worth discussing with the detached prices in Bowen Island recording the highest increase with a 27.4% increase to $821,000. On the other hand, Lander had the least increase with the average detached home prices rising 6.8% to $947,900, whereas in West Vancouver, the home prices were quite surprising as prices declined a significant 12.6% to $2,936,500 an even though this figure is not considered as affordable, it is however worth noting the slight decline.
On the other hand, sales of detached homes across the Greater Vancouver Areas dropped significantly in February by 58.1% with only 745 sales recorded. The largest drop was however seen in New Westminster with only 7 units sold which is an 85% drop for last February.
It is changing trend in sales across Greater Vancouver is worth noting to determine where they are headed.
Additionally, in February, the REBGV noted there was a shortage of inventory in the area and a 25.3% decline in inventory did justice to their claims. This leaves only 1,420 new listings on the market in the region. But fortunately for the city, although home inventory is a 17% decline from the previous year, the demand for homes has also declined below the inventory level.
Nevertheless, with this entire indecisive situation, Vancouver still remains to be one of the most preferred real estate markets in Canada. The only message the REBGV wants to put across is that the city’s real estate market will not be as hot as it was last year.