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

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