Residential Prices in Vancouver still falling

The Real Estate Board of Greater Vancouver has posted that benchmark home prices have now slipped below $1,000,000 at $998,700. Home sales are also reported to be lower than they have been in 19 years. Home sales are also 34% lower than the 10 year average. The inventory is higher than it has been in 5 years. It seems all negative but the absorption rate is still at 13.9 %. That means that Vancouver is still a slight buyer's market as the region quotes 12% as the turning point. The real question is, "Will some of the small positive changes in the in the Canadian lending environment stop this downward pressure in Vancouver?" CMHC is coming out with an aggressive first time buyer's plan in September, interest rates are going down and there is some small improvement in certain specific property types in both Vancouver and Toronto. Vancouver is a freight train and the momentum will take a lot to turn around. Time will tell. 

 

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