Real Estate sales and prices continue to drop in Metro Vancouver. (CBC)

The Real Estate Board of Greater Vancouver says the number of residential property sales declined 42.9 per cent in September from a year earlier.

The number of residential properties sold in Greater Vancouver dropped from 2,776 in September 2007 to 1,585 in September 2008, according to a report released Thursday by the board.

The number of new listings continued to rise, up 28.8 per cent from the same month last year.

There were 6,142 new listings for detached, attached and apartment properties in September 2008, compared with 4,770 new listings in September 2007.

Home prices also decline

Prices also continued a downward trend after hitting a peak earlier this year, according to the report.

The benchmark price, as calculated by the MLSLink Housing Price Index, for detached properties declined 1.6 per cent from September 2007 to $726,331.

And since May of this year, the benchmark price for a detached property in Greater Vancouver has declined 5.8 per cent.

The benchmark is used to represent the value of a typical property sold in the market, but does not represent the average or mean price.

The benchmark price of an apartment property declined 0.7 per cent from September 2007 to $369,062. And since May 2008, the benchmark price for an apartment in Greater Vancouver has declined 5.2 per cent.

For an attached property, the benchmark price has declined three per cent since May.

Despite the fall in sales, board president Dave Watt remained upbeat about the Vancouver real estate market.

"Although the economic situation in the United States has affected consumer confidence globally, the consensus view remains that our local housing market is underpinned by solid economic fundamentals," Watt said in a statement.

"After five years of unprecedented increases, housing prices are beginning to realign."

The Real Estate Board of Greater Vancouver is an association representing more than 9,800 real estate agents.