Stricter mortgage qualification rules and an increase in mortgage rates helped drive the number of home sales down 30% year-over-year across Metro Vancouver in July, according to new data from the Real Estate Board of Greater Vancouver.
A total of 2,070 sales were recorded in the month, which REBGV said is the lowest number for the month of July since 2000.
It is also 29.3% below the 10-year July sales average.
Detached home sales fell 32.9% to 637 from 949 recorded in July 2017. Apartment properties fell 26.5% to 1,079 sales from the 1,468 sales in the same month last year. Townhome sales fell 34.8%, from 543 sales in July 2017 to 354 units.
The drop in sales was not related to a lack of supply; in fact, the total number of properties listed for sale grew 32% year-over-year, reaching 12,137 homes.
“Summer is traditionally a quieter time of year in real estate,” said REBGV president Phil Moore. “This is particularly true this year.
“With increased mortgage rates and stricter lending requirements, buyers and sellers are opting to take a wait-and-see approach for the time being.”
Drop in sales did not push prices lower
Despite falling sales and a subsequent increase in supply, prices still climbed in the region. The benchmark price for all home types grew 6.7% year-over-year, reaching $1,087,500. Detached property prices increased 1.5% to 1,588,400, apartment prices jumped 13.6% to $700,500 and townhome prices grew 12.1%, reaching $856,000.
@EmmaHampelBIV
