Metro Vancouver Home Sales Fall by 44% Despite Prices Remaining High

As a result of physical distancing measures and stay-at-home orders being imposed across Canada as a means of mitigating the spread of the coronavirus pandemic, the real estate market became the subject of significant volatility.

The Greater Vancouver area, which is known to skew a variety of national variables pertaining to real estate, is currently experiencing a bout of disequilibrium between prices and output. According to the Real Estate Board of Greater Vancouver, home sales have fallen 44% in May compared to the same time a year prior, and are 54% lower than the 10 year average for the month. April however, was most likely the worst, with the lowest sales figures since 1982.

For the month of May, there was a total of 3,684 properties listed for sale in the Metro Vancouver area, which corresponds to a decrease of 37.1% compared to the same time a year prior. However, the figure also represents an increase of 59.3% compared to just the previous month.

Most notable however, is the discrepancy between the decrease in home sales and the relatively unchanged corresponding prices. According to the real estate board, the MLS home price index composite benchmark price for Metro Vancouver residential properties was at $1.03 million – an increase of approximately 2.9% compared to the same time a year prior.

However, the real estate market in the Greater Vancouver area may soon fall back into equilibrium after all. As previously announced by the Canadian Mortgage and Housing Corp, the real estate sector is predicted to be subject to a significant price reduction of anywhere between 9% to 18%, with oil-producing regions experiencing up to a 25% reduction. Even if the economy is on track for a fast recovery, it will most likely not be until mid-2021 that a price recovery is evident; if the economy maintains a slower pace however, it may take until 2022 for prices to rebound to pre-pandemic levels.


Information for this briefing was found via Bloomberg, Real Estate Board of Greater Vancouver, and CBC News. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Why $50 Silver, $4000 Gold Might Be Closer Than Anyone Thinks | Bradley Langille – GoGold Resources

Why Silver’s True Price Could Be Much Higher | Joaquín Marias – Argenta Silver

Gold Enters A ‘Stronger For Longer’ Phase | Richard Young – i-80 Gold

Recommended

Emerita Resources Intersects Further Mineralization At El Cura, Expanding Deposit

ESGold Sees ANT Survey Reveal Vertically Continuous System To 1,200 Metres Depth

Related News

Canada’s Housing Starts Decline 9% In June

Canada’s housing market showed signs of cooling in June, with total housing starts dropping 9%...

Tuesday, July 16, 2024, 10:24:35 AM

Bank of Canada Raises Alarm Over FOMO Pushing Housing Prices Higher

The Bank of Canada remains optimistic with regards to the ongoing economic recovery, with plans...

Wednesday, March 24, 2021, 10:43:00 AM

Khalistanis Demand Their Land From Trudeau

In a display of mounting tensions, clashes erupted between pro-Khalistan and pro-India demonstrators outside the...

Tuesday, July 11, 2023, 01:37:00 PM

US New Home Sales in June Sharply Plummet to Lowest Since April 2020

If Fed Chair Jerome Powell is looking for yet another excuse to keep the money...

Monday, July 26, 2021, 05:41:00 PM

Ottawa Relaxes Foreign Home Buyers Rules After Loosely Banning It

Only months after the new laws went into effect, the Canadian government is removing some...

Wednesday, March 29, 2023, 12:59:00 PM