Vancouver home sales continue to slip following implementation of foreign buyers’ tax

Shutterstock

Sales of existing homes in Vancouver fell 3.4% in November and were down 37.4% year-over-year, according to data released December 15 by both the British Columbia Real Estate Association and the Canadian Real Estate Association.

“The higher end of the market is still reeling in the wake of the tax on nonresident buyers, which likely had a bigger impact than Ottawa’s rule changes,” Robert Kavcic, senior economist for BMO Financial group said in a note to investors.

“Not coincidentally, benchmark price growth peaked in July at 32.6% year-over-year but has now slowed to ‘just’ 20.5% year-over-year and is now declining outright on a month-to month basis.”

The average sale price for all home types in the city in November was $895,084, down 3.8% year-over-year. Total dollar volume fell 39.8%, reaching $2.02 billion.

Kavcic pointed out that Victoria, which was not affected by the implementation of the foreign buyers’ tax, has seen home sales increase over the period. In the 12 months to November, the total dollar volume of sales increased 34.4% to $359 million, and the average home price jumped 29.2%, reaching $639,871.

The weakness in Vancouver pulled the provincial average down 20.1% compared with November 2015, but the BCREA pointed out that with a total dollar volume of $4.02 billion (down 25.2% year-over-year), sales are now trending toward the 10-year average.

A total of around 89,000 units changed hands in B.C. last month; by comparison, the 10-year average is 83,000 units, and the 15-year average is 85,300 units.

Data released by Teranet yesterday (December 14) showed home sales prices were down 1.3% in the month; there is a discrepancy between this and today’s BCREA and CREA data because Teranet’s data includes repeat sales only.

ecrawford@biv.com

@EmmaHampelBIV

Check out BIV’s podcast for the week of December 13, 2016:

comments powered by Disqus

More from Real Estate

Timber condos to start at $3 million

Star architect, Douglas fir create Terrace House, Vancouver’s most expensive new apartments

Read Article

Detached-home sales cool in Fraser Valley as prices hit ‘threshold’

Single-family houses collecting dust on market after benchmark price approaches $1 million

Read Article

First Nations now a first stop in industrial land crunch

Chilliwack looking to region’s band lands for industrial development opportunities

Read Article

Cressey buys controlling stake in strata that failed in court to wind ...

Owners who opposed selling homes had won in B.C. Supreme Court

Read Article

Vancouver home sales up 26%, prices up 14% year-over-year: REBGV

Read Article

Subscribe to our mailing lists

You may withdraw your consent at any time.

* indicates required

Newsletters

* You can modify your newsletter subscriptions at the bottom of any newsletter you receive.
Business in Vancouver Media Group
303 West 5th Avenue, Vancouver, British Columbia
V5Y 1J6 · Canada
604-688-2398
×