Chinese exodus sucks down Vancouver housing

By Leith van Onselen

The Teranet-National Bank House Price Index for February has been released, which shows that Canadian house prices fell 0.4% in February with annual growth falling to 1.9%:

Across the three major markets, values fell by 0.7% in Vancouver in February and by 0.2% in Toronto, whereas values rose by 0.4% in Montreal.

In the year to February, Vancouver values fell by 1.1%, whereas they rose by 3.6% in Toronto and by 5.2% in Montreal.

Meanwhile, the Real Estate Board of Vancouver reports that sales volumes have crashed:

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,484 in February 2019, a 32.8 per cent decrease from the 2,207 sales recorded in February 2018, and a 34.5 per cent increase from the 1,103 homes sold in January 2019.

Last month’s sales were 42.5 per cent below the 10-year February sales average.

And this has been caused in part by the exodus of Chinese capital:

Vancouver home prices have skyrocketed in recent years thanks in part to an influx of foreign capital, mostly coming from mainland Chinese buyers.

The high-end market has been hit especially hard as foreign capital dries up.

The same forces are at play in Sydney and Melbourne, where Chinese demand has similarly dried-up.

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