Metro Vancouver's benchmark home price drops below $1 million: report

Jul 4 2019, 1:51 am

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New data on the real estate market’s performance in June 2019 shows Metro Vancouver’s benchmark home price for all property types dipped below the $1 million threshold, reaching $998,700.

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According to the Real Estate Board of Greater Vancouver (REBGV), last month’s benchmark price was a 9.6% decrease over June 2018 and a 0.8% decrease over May 2019. It is also the first time the benchmark price hit below $1 million since May 2017.

Detached home sales for the month reached 746 units, representing a 2.6% decrease from June 2018. The benchmark price for this home type was $1.424 million — a 10.9% decrease from June 2018 and a 0.1% increase compared to May 2019.

For apartments, the number of units sold was 941, which is a 24% drop compared to June 2018. The benchmark price for apartments also saw comparative tumbles, with the month reaching $654,700 — down 8.9% from June 2018 and a drop of 1.4% from May 2019.

Attached home sales in June 2019 reached 390 units — a 6.9% decrease compared to June 2018. The benchmark price for an attached unit was $774,700, representing a 8.6% drop from June 2018 and a 0.6% decrease from May 2019.

Overall for all home types across the region, there were 2,077 units sold, which translates to a 14.4% decrease from the 2,425 sales recorded in June 2018 and a 21.3% decrease from the 2,638 homes sold in May 2019.

June 2019’s sales also continued the trend of monthly sales falling below the 10-year average, with the month’s sales dipping below the 10-year June sales average and reaching 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,” said Ashley Smith, president of REBGV, in a statement, adding that prospective “home buyers have not had this much selection to choose from in five years.”

Last month, there were 4,751 properties newly listed for sale, representing a 10% decrease compared to June 2018 and a 18.9% drop from May 2019.

In total, the region currently has 14,968 properties listed for sale — a 25.3% increase compared to June 2018 and a 1.9% increase compared to May 2019.

REBGV data indicates the sales-to-active listings ratio for June 2019 was 13.9% — a significant change from the 18% recorded the previous month.

Economists generally believe a downward pressure on home prices occurs when the ratio falls below 12% for a sustained period, while home prices experience upward pressure when it surpasses 20% over consecutive months.

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Kenneth ChanKenneth Chan

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