Vancouver properties showed modest year-over-year price decreases as inventory has started to climb, according to the Royal LePage House Price Survey released yesterday.
Detached bungalows posted a decrease of 0.9% to $1,013,500, while standard two-storey homes decreased 1.5% year-over-year to $1,125,750. Standard condominiums posted the largest decrease, slipping 3.0% year-over-year to $498,000.
“We’ve seen a modest increase in inventory as market activity has slowed more than the seasonal norm,” said Bill Binnie, broker and owner of Royal LePage North Shore.
“As predicted, recent changes to mortgage lending rules have had an effect on the Vancouver housing market as affordability was an issue prior to the rule change.”
Chris Simmons, broker and owner of Royal LePage Westside & City Centre, commented that although Chinese buyers have not been as active in the housing market as in previous years, they are expected to return once prices stabilize.
“Vancouver is a wonderful place to live and both national and international desire to live here has not diminished,” said Simmons.
“Buyers are being very cautious. However, the variety and choices of housing that is available as well as price reductions will spur activity sooner rather than later.”
Nationally, the average standard two-storey home in Canada increased 4% year-over-year, rising to $403,747, while detached bungalows rose 4.8% to $366,773. Standard condominiums increased 1.8% to $243,607. Most cities in Canada experienced modest price appreciation in the quarter, but fewer homes were sold compared with the same period in 2011.
See next week’s Business in Vancouver for more on the housing market decline.