Home prices in Metro Vancouver plunge as interest rates rise – BC News

A TD Bank forecast that average home prices in British Columbia will drop 8.1% by next year seems overly optimistic in Metro Vancouver, as June sales prices fell for the third consecutive month.

The June composite benchmark price for all residential properties in Greater Vancouver was $1,235,900, down 2% from May and 2.2% over the past three months, reports the Real Estate Board of Greater Vancouver.

Single-detached home prices are seeing the biggest drop in dollars, down an average of $37,000 a month since March to a benchmark price of $2,058,600 in June.

In Vancouver’s flagship West Side market, the median price of a single-detached home fell from $194,000 in May to $3,063,500 in June.

“We are seeing downward pressure on home prices as we enter the summer due to lower homebuyer activity, not increased supply,” Daniel said. John, president of the REBGV.

Total home sales in Greater Vancouver totaled 2,444 in June 2022, down 35% from June 2021 and down 16.2% from the 2,918 homes sold in May 2022.

The Fraser Valley Real Estate Board (FVREB) processed 1,281 sales in June, down 5.8% from May and down 43% from June last year.

“In just two months, our market has broadly balanced out, mainly due to a slowdown in demand for single-family homes,” said FVREB President Sandra Benz, who noted the effect of rising prices. mortgage rates.

Fraser Valley single-detached home prices fell 3.5%, or $57,855, month-over-month to hit a landmark of $1,653,000 in June, Fraser Valley Real reports. Estate Board.

The Bank of Canada, which has raised its key rate by 75 basis points since March, is expected to raise it from 50 to 75 basis points on July 6 to fight inflation.

This will trigger a further decline in home sales and prices, according to TD Bank. In a June 30 report, TD predicted that British Columbia would experience one of the largest corrections, with the average house price falling 8.1% in 2023.

The price cuts and increased supply should be welcomed by home buyers, according to real estate agents.

“In most parts of Metro Vancouver, and especially at higher prices, it’s now a buyer’s market,” said Kevin Skipworth, managing partner at Dexter Associates Real Estate in Vancouver. .

He pointed to the strata area of ​​the City of Vancouver as particularly attractive due to increased supply and falling prices. The benchmark price for a townhouse in the city fell nearly 2% in June from the previous month and condo prices fell 2.3% month over month, the most sharp decline being recorded in the trendy West Side.

“Vancouver’s West Side has seen townhomes and condos increase by up to five months of supply from three months last year,” Skipworth said. “What a change and what an opportunity compared to a year ago. Buyers, your time has come.

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