Amid considerably reduced purchasing power, buyers in the region have become far more cautious
Greater Vancouver home sales activity saw a significant annual decline of approximately 35% in June as units remained on the market longer and interest rates continued to rise, according to the region’s real estate board.
On a monthly basis, transactions also fell by 16%, for a total of 2,444 sales in the region in June. This level was 23.3% below the market’s 10-year average for that month.
Daniel John, chair of the Real Estate Board of Greater Vancouver, said that interest rate hikes and the corresponding mortgage rate increases were the main drivers of this dynamic.
“Home buyers have more selection to choose from and more time to make decisions than they did over the past year,” John said. “Rising interest rates and inflationary concerns are making buyers more cautious in today’s housing market, which is allowing listings to accumulate.”
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A total of 5,256 homes in the region were newly listed last month, representing decreases of 17.6% monthly and 10% annually.
The benchmark price for a new home in Greater Vancouver stood at little over $1.2 million in June, down by 2% from May but up by 12.4% from June 2021.
This deceleration might characterize much of the market’s activity for the next few months, the REBGV cautioned.
“We’re seeing downward pressure on home prices as we enter summer in Metro Vancouver due to declining home buyer activity, not increased supply,” John said.
