House prices dropped for the first time this year in Vancouver — a signal that Canada’s hottest housing market could finally see a price correction.
The latest home-sales figures show that the number of houses sold dropped by 21% in July from June. Prices crept down by 0.1%, putting Vancouver’s average detached home price at $630,251, according to the Real Estate Board of Greater Vancouver. (Over the past two years the average resale price in Canada has jumped to a record $372,700.)
Leading economists from BMO and other major Canadian banks believe the slowdown is fast approaching in the country’s hottest market: while listings of sale properties continue to increase, houses are sitting on the market longer and bidding wars are becoming less common.
While the price drop has significant ramifications for lower mainland B.C. homeowners, the move is being viewed by many economists as a signal that the rest of the country’s housing market will cool off. These predictions are bolstered by the continued economic uncertainty of Canada’s largest trading partner, the U.S.