Vancouver house prices continue to dive

The Teranet-National Bank House Price Index for September has been released, which shows that Canadian house prices rose by 0.1% across the 11 major markets, with annual growth improving to 0.7%:

However, prices in Vancouver continued to fall, declining by 0.5% in September and down 7.4% since peaking in July 2018.

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

The MLS® Home Price Index composite benchmark price for all residential homes in Metro Vancouver is currently $990,600. This represents a 7.3 per cent decrease over September 2018 and a 0.3 per cent decrease compared to August 2019.

However, volumes are increasing:

Sales of detached homes in September 2019 reached 745, a 46.7 per cent increase from the 508 detached sales recorded in September 2018…

Sales of apartment homes reached 1,166 in September 2019, a 43.6 per cent increase compared to the 812 sales in September 2018…

The nascent rebound in Canadian housing activity 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.

Leith van Onselen

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

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