Slow sales and lots of inventory push down Vancouver home prices

Residential towers in Coal Harbour have some of the more expensive homes in the downtown peninsula | Glen Korstrom

Prices for Metro Vancouver homes are starting to decline in the wake of sluggish sales and plenty of residences up for sale, according to the Real Estate Board of Greater Vancouver (REBGV).

“Home prices have edged down between 3% and 5%, depending on housing type, in our region since June,” said REBGV president Phil Moore. “This is providing a little relief for those looking to buy compared to the all-time highs we’ve experienced over the last year.”

Declining home prices come as a result of sales in October being 26.8% below the 10-year October-sales average.

Only 1,966 homes sold in the region in October 2018. That is a 34.9% decrease from the 3,022 sales recorded in October 2017.

There are now 12,984 homes listed for sale on the Multiple Listings Service (MLS) system in Metro Vancouver – a 42.1% increase compared to October 2017, when 9,137 homes were on the market.

“The supply of homes for sale today is beginning to return to levels that we haven’t seen in our market in about four years,” Moore said.

“For home buyers, this means you have more selection to choose from. For sellers, it means your home may face more competition, from other listings, in the marketplace.”

The benchmark price for all homes in Metro Vancouver is $1,062,100. That price is up 1%, compared to a year ago, but down 3.3% compared to three months ago.

The benchmark price for detached properties is $1,524,000. This represents a 5.1% drop compared with a year ago and a 3.9% dip compared with a few months ago.

The benchmark price for an apartment is $683,500 – up 5.8% compared with a year ago but down 3.1% compared with a few months ago. 

The benchmark price for an attached home is $829,200 – up 4.4% compared with a year ago but down 2.8% compared with a few months ago.