More than a year after the implementation of the foreign-buyer tax in August 2016, the total number of homes sold year-to-date in September is down 17.2% compared with last year, according to British Columbia Real Estate Association data released October 12.
A total of 28,631 homes were sold in the first nine months of 2017, compared with 34,598 units in the same period last year. Prices increased over the period, however; in September 2017, the average residential sales price was $1,013,421 – a 17.2% increase compared with $864,566 in September 2016.
Across the province, the total dollar volume of sales fell 12.8% year-over-year in September to $57.6 billion. Unit sales fell $13% to 81,608 homes. As in Vancouver, however, prices increased in most regions; the average sale price was $693,774 – up 18.5% from $585,538 a year ago.
“Total active listings on the market continue to trend at 10-year lows in most B.C. regions, limiting unit sales and pushing home prices higher,” said BCREA chief economist Cameron Muir.
“While the economic fundamentals support elevated housing demand, rising home prices are eroding affordability, particularly for first-time buyers.”
The latest data comes a day after RBC released a forecast in which it said it expects B.C. home sales to fall 9.8% this year and 8% next year.