Vancouver house prices keep falling

The Teranet-National Bank House Price Index for June has been released, which shows that Canadian house prices rose by 0.8% across the 11 major markets, with annual growth falling to 0.5%:

Across the three major markets, values fell by 0.3% in Vancouver in June, but rose by 1.3% in Toronto and by 0.8% in Montreal.

In the year to June, Vancouver values fell by 4.9%, whereas they rose by 2.8% in Toronto and by 5.4% in Montreal.

Since peaking in July 2018, Vancouver’s house prices have fallen by 5.2%.

Meanwhile, the Real Estate Board of Vancouver reports that prices and sales volumes have fallen heavily:

With home buyer demand below long-term historical averages in June, the supply of homes for sale continued to accumulate in Metro Vancouver*.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,077 in June 2019, a 14.4 per cent decrease from the 2,425 sales recorded in June 2018 and a 21.3 per cent decrease from the 2,638 homes sold in May 2019.

Last month’s sales were 34.7 per cent below the 10-year June sales average. This is the lowest total for the month since 2000.

“We’re continuing to see an expectation gap between home buyers and sellers in Metro Vancouver. Sellers are often trying to get yesterday’s values for their homes while buyers are taking a cautious, wait-and-see approach”…

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 14,968, a 25.3 per cent increase compared to June 2018 (11,947) and a 1.9 per cent increase compared to May 2019 (14,685)…

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $998,700. This represents a 9.6 per cent decrease over June 2018 and a 0.8 per cent decrease compared to May 2019.

This is the first time the composite benchmark has been below $1 million since May 2017.

The weakness in Canada’s housing market helps to explain why the Canadian Government has unleashed a new wave of first home buyer subsidies in a bid to offset the loss of corrupt Chinese money and to support prices.

Unconventional Economist

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