Vancouver’s housing bust coming to an end?

The Teranet-National Bank House Price Index for August has been released, which shows that Canadian house prices rose by 0.4% across the 11 major markets, with annual growth improving to 0.6%:

Across the three major markets, values fell by 0.8% in Vancouver in August, but rose by 0.8% in Toronto and by 1.1% in Montreal.

In the year to August, Vancouver values tanked by 6.6%, whereas they rose by 3.8% in Toronto and by 5.7% in Montreal.

Since peaking in August 2018, Vancouver’s house prices have fallen by 7.0%.

Meanwhile, the Real Estate Board of Vancouver also reported falling prices:

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $993,300. This represents an 8.3 per cent decrease over August 2018 and a 0.2 per cent decrease compared to July 2019.

However, sales volumes have rebounded, but remain at below-average levels:

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,231 in August 2019, a 15.7 per cent increase from the 1,929 sales recorded in August 2018, and a 12.7 per cent decrease from the 2,557 homes sold in July 2019.

Last month’s sales were 9.2 per cent below the 10-year August sales average.

“Home sales returned to more historically normal levels in July and August compared to what we saw in the first six months of the year.”

The rebound in Canadian house prices might be explained by the Canadian Government unleashing 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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