Greater Vancouver Real Estate Prices Just Made The Second Biggest Monthly Drop Ever

Greater Vancouver Real Estate Prices Just Made The Second Biggest Monthly Drop Ever

Greater Vancouver real estate continued its rut, like most of the country’s markets. Real Estate Board of Greater Vancouver (REBGV) data shows the price of a typical home fell in July. It was the third consecutive drop, coming in just a hair below the record. Despite the recent downturn, prices are still much higher than last year but that can change fast. Even the board warned both buyers and sellers to assess their circumstances.


Greater Vancouver Home Prices Fell, But Still Up From Last Year


Greater Vancouver real estate prices made a sharp drop but are still up by a lot. The composite benchmark price of a home fell to $1,207,400 in July, down 2.4% (-$28,500). Prices are still 10.3% (+$112,400) higher than last year. Huge numbers in both directions, so let’s take a quick dive.


Greater Vancouver Real Estate Are Off The Peak


The composite benchmark price of a home across Greater Vancouver.

Source: REBGV; Better Dwelling.


Last Month Was The Second Biggest Drop For Home Prices Ever


Greater Vancouver’s monthly price decline was one of the biggest on record. July was the third consecutive month to see prices fall, becoming larger each time. Last month’s decline was so big, it was only $100 shy of the record. Housing is still setting records, just not in the direction many would hope. 


Nearly All Gains YTD Price Gains Have Been Wiped Out 


Home prices rolled back nearly half a year. A typical home is now at the lowest price since January 2022, with annual growth back to March 2021 levels. If prices are able to retain the double-digit growth, it would still be huge. However, prices are dropping fast and  only 3 more months like this can wipe out annual gains. 


Greater Vancouver Real Estate Price Growth Is Decelerating


The 12-month percent change for the composite benchmark price of a home across Greater Vancouver.

Source: REBGV; Better Dwelling.


The sales to new listings ratio (SNLR) shows the market is still in balanced territory. It’s at the lower range of balanced, and prices are still falling. This can indicate it’s on its way into a buyer’s market, where annual price growth turns negative. 


“In today’s changing housing market, both home buyers and sellers should invest the time to understand what these changes mean for their personal circumstances,” said REBGV CEO Daniel John. 


There wasn’t much more and it sounds ominous, but there’s a lot to consider. If you’re a buyer, the market is seeing much healthier levels of inventory. However, BMO recently warned of an uptick in buyers trying to walk away and a rise in failed closings. They went so far to say they’d be bullish on real estate lawyers this year.  The takeaway there is make sure you’re not stretching too far, and really want the home you’re buying.


At the same time, sellers should realize it’s pretty hard to find buyers while prices are falling. Prices are still much higher than last  year, but certainly off the market’s peak. This can mean not listing at the right price can risk bigger erosion of value. At least if the property needs to move in the short-term.


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