As real estate sales activity declines, prices are starting to follow
The long-awaited buyer’s real estate market could be on the way in the Lower Mainland. Clark Woods LLP real estate and conveyancing lawyer Keith Barron said he is seeing price reductions and new listings priced lower than average popping up across Metro Vancouver and the Fraser Valley.
“Buying a home is still a pricey proposition,” he said. “But prices are starting to look a little better for buyers, which is something we haven’t seen in a long time.” The latest figures from the Greater Vancouver Real Estate Board show evidence that prices are starting to slowly pull back.
In August, for example, the average price of a detached home fell 2.3% compared to July, while townhouse prices fell 2.5% and apartment prices fell 2% over the course of the month. In the last three months, the price declines have been even more significant. According to the MLS Home Price Index, the benchmark price in Metro Vancouver has fallen 8.6% for detached homes, 7.2% for townhouses, and 5.4% for apartments.
The decrease in prices come as sales activity has slowed down significantly in the region. The number of real estate transactions in August fell 40.7% compared to last year and was 29.2% below the 10-year August sales average.
We are definitely seeing the market adjust,” said Melanie Earland, a senior conveyancer at Clark Woods LLP. “There has been a slowdown in sales activity and that is putting some downward pressure on price.”
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