British Columbia

Home sales down 43 per cent from July last year, according to Greater Vancouver real estate board

Home sales last month were down 43 per cent from July 2021 and 23 per cent this past June, signalling a new market cycle characterized by lessening demand for homes, according to the Real Estate Board of Greater Vancouver.

Prices have slowly been decreasing at about 2 per cent a month: Real Estate Board of Greater Vancouver

A 'new listing' realty sign in front of a row of single-family homes.
Detached homes are pictured in Vancouver in September 2021. Increasing interest rates and inflationary concerns are behind buyers' caution, according to Craig Munn of the Real Estate Board of Greater Vancouver. (Ben Nelms/CBC)

Home sales last month were down a whopping 43 per cent from July 2021, and 23 per cent from this past June, according to the Real Estate Board of Greater Vancouver (REBGV). 

Sales in the region totalled 1,887, which is 35.2 per cent below the 10-year July sales average. 

The board says these figures signal a new market cycle — characterized by lessening demand for homes — is here. 

"I think home buyers and sellers are taking a breather after a frenetic two-year period," said Craig Munn, vice president of communication at REBGV 

Munn said buyers' caution is being driven by increasing interest rates and inflationary concerns. 

"Home buyers are wisely taking time to assess what these changes mean for their own personal circumstances."

The board says that part of the new market cycle includes a gradual rise in the number of homes for sale, but last month's listings totalled 3,960 homes, down almost 10 per cent from July 2021 and 25 per cent from June 2022.

Meanwhile, the composite benchmark price for the region sat at more than $1.2 million last month, a roughly 10 per cent increase from July 2021 and a two per cent drop from June 2022.

Munn said prices have started to edge down over the last three months, but at a gradual pace of about two per cent per month. 

'A very normal response in the market'

Brendon Ogmundson, chief economist at the B.C. Real Estate Association, said demand is cooling off across the province. 

"No matter what market you look at, sales are generally about 20 to 25 per cent below what's normal for this time of year," said Ogmundson. 

 

Ogmundson said while prices are slowly declining, a big drop in prices is highly unlikely.

"What we're seeing is a very normal response in the market to very high interest rates."

With files from Yasmin Gandham

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