Significant price declines observable among Vancouver detached homes

This is in stark contrast to the city’s rental market, which is likely entering a boom period

Significant price declines observable among Vancouver detached homes

Despite accelerating sales and ever-tighter supply, the value of Vancouver’s detached housing is steadily declining, latest data from the regional real estate association indicated.

According to the Real Estate Board of Greater Vancouver, the market saw a 72.1% annual increase in detached real estate sales in December, for a total of 599 transactions. However, this was 27.39% lower on a monthly basis, and 2.76% below Vancouver’s 5-year median sales volumes for December.

Last month, the market saw 522 new detached listings, falling 50.52% from November and 2.61% from December 2018. Total inventory was at 3,941 active detached listings in December, dropping 17.65% from the month prior and lower by 19.59% annually.

Meanwhile, detached real estate prices in Greater Vancouver saw their benchmark prices shrink by 4% year-over-year, ending up at $1,423,500 in December. The decline was more acutely visible within the city, as detached benchmarks fell by 3.1% annually in Vancouver East (down to $1,390,100) and by 6.7% in Vancouver West (down to $2,588,900).

The situation was in marked contrast to Metro Vancouver’s rental market, which enjoyed significant growth in activity and value over the last year.

Per the CMHC’s last prediction in October, the city’s rental housing is expected to have a vacancy rate of 1.1% by the end of 2019, and two-bedroom average rent rates are forecast to settle at around $1,715 (from $1,649 in 2018).

“It’s a combination of issues that need to get fixed — not just in Vancouver but a lot of other [surrounding] municipalities,” LandlordBC chief executive David Hutniak told CBC News.

A spokesperson for CMHC reiterated that it is still “confident” in those predictions. These levels will place Metro Vancouver among the regions with the nation’s lowest vacancy rates and highest rents.