Current market conditions in Vancouver give consumers plenty of room to wait and see, a trend that kept price growth during the second quarter at manageable levels.
The latest edition of the Royal LePage House Price Survey indicated that higher inventory levels and lower average prices are actually leading to moderation in overall activity.
“A wider variety of available homes to choose from is giving home buyers extra time to plan and make decisions,” Royal LePage Sterling Realty general manager Randy Ryalls said.
On an annual basis, the market’s aggregate housing price shrunk by 4.1% to $1,208,674.
“A better understanding of the reality of the real estate market in the region is helping both home buyers and sellers to manage expectations and make better-informed transactions,” Ryalls added.
The most expensive asset class was the two-storey home, which had an aggregate price of $1,509,711 (around 3.3% lower year-over-year). Meanwhile, bungalows declined by 7.6% annually during the quarter to reach $1,315,612. Condos dropped by 2.8% to end up at $668,389.
By the end of the year, Greater Vancouver will likely see its aggregate prices fall by 5.5% annually due to multiple pressures.
“Affordability in the British Columbia housing market remained on provincial and federal government agendas during the second quarter of the year. A combination of recent economic announcements including the foreign buyers tax, the speculation and vacancy tax, and the mortgage stress test contributed to elevated inventory levels and a wait-and-see approach from potential buyers,” Royal LePage explained.
“As new building construction remained on hold during the second quarter of 2019, summer home buyers will have the opportunity to choose from affordable listings before the traditional fall price uptick.”