Home prices decline across Greater Vancouver in Q2

Home prices across Greater Vancouver continued to decline in the second quarter of 2019, according to a Royal LePage House Price Survey released in mid-July. The downward pressure on the market was a result of high inventory levels across all housing types.

The aggregate home price in Greater Vancouver decreased 4.1 per cent to $1.2 million, compared to the same period last year. When broken down by housing type, the median price of a two-storey home and bungalow declined by 3.3 per cent and 7.6 per cent, respectively, to $1.5 million and $1.3 million. The median price of a condominium decreased 2.8 per cent year-over-year to $668,389.

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.

As new building construction remained on hold during this time period, summer homebuyers will have the opportunity to choose from affordable listings before the traditional fall price uptick.

“A wider variety of available homes to choose from is giving homebuyers extra time to plan and make decisions,” says Randy Ryalls, general manager, Royal LePage Sterling Realty. “A better understanding of the reality of the real estate market in the region is helping both homebuyers and sellers to manage expectations and make better-informed transactions.”

Ryalls added that attractive interest rates and the Greater Vancouver housing market’s price depreciation, expected to continue throughout the summer, represent a great opportunity for homebuyers to invest in their first home or upgrade to a new house.

Looking ahead to the end of the year, Royal LePage is forecasting further declines across the board, with aggregate prices in Greater Vancouver expected to fall 5.5 per cent at year-end compared to the end of 2018.

MARKET SUMMERIES

The aggregate home price in the city of Vancouver in the second quarter of 2019 decreased 4.7 per cent year-over-year to $1.3 million. The median condominium price decreased 5.6 per cent to $766,953, the first price decrease seen for this type of housing since the third quarter of 2014. Two-storey homes and bungalows both depreciated when compared to the same time last year, decreasing 3.9 per cent and 5.4 per cent to $2.1 million and $1.4 million, respectively.

WEST VANCOUVER

Meanwhile, the aggregate price of a home in West Vancouver continued to decline, falling 7.6 per cent to $2.7 million. Within the region, the median price of a two-storey home decreased 0.7 per cent to $3.3 million, while the price of a bungalow fell 10.8 per cent to $2.5 million. Condominiums also saw a double-digit decline of 12.9 per cent to $1.75 million.

NORTH VANCOUVER

This area witnessed price depreciation in the second quarter, as the aggregate price of a home decreased 4.2 per cent to $1.3 million. The median price of a two-storey home remained relatively flat, dipping 0.9 per cent to $1.6 million. Bungalow and condominium prices also saw depreciation, decreasing 7.8 per cent and 7.1 per cent to $1.5 million and $640,148, respectively.

RICHMOND

In Richmond, the aggregate price of a home fell 4.1 per cent to $1.1 million, while median prices of two-storey homes and bungalows declined 3.7 per cent and 9.3 per cent to $1.4 million and $1.3 million, respectively. Condominium prices saw a modest decrease of 1.8 per cent to $580,590.

BURNABY

Homes in Burnaby decreased 7.3 per cent to $1.29 million. Bungalows saw the highest price depreciation in the region, as the median price decreased 13.0 per cent year-over-year, to $1.2 million. The median price of a two-storey home also decreased 6.1 per cent to $1.4 million while condominium prices decreased 2.0 per cent to $610,829.

COQUITLAM

Coquitlam home values declined with the region’s aggregate home price decreasing 3.5 per cent to $1.07 million. The median price of a two-storey home decreased 2.9 per cent to $1.2 million. Both bungalows and condominiums saw similar price depreciation, decreasing 4.7 per cent and 4.3 per cent to $1.1 million and $527,774, respectively.

SURREY

In Surrey, home prices remained competitive within the region. The aggregate price of a home in the area decreased 3.2 per cent year-over-year to $876,505. The median price of a two-storey home and bungalow decreased 3.5 per cent and 4.0 per cent to $979,779 and $862,592, respectively. Condominiums saw a moderate increase of 2.7 per cent to $401,693, making Surrey the only market in Greater Vancouver to see an increase in condominium prices.

LANGLEY

The aggregate price of a home in Langley decreased 4.4 per cent to $936,715. Condominium prices drove the market in the second quarter, increasing 4.9 per cent to $402,019, while bungalows and two-storey homes decreased 8.5 per cent and 3.4 per cent to $887,145 and $1.04 million, respectively.

“We now have evidence of a sustained market recovery in the nation’s largest market, and signs of a price floor in other regions hit hard by the 18-month-old housing correction,” says Phil Soper, president and CEO, Royal LePage. “Only in the West do we see a significant number of homebuyers remaining on the sidelines, depressing sales volumes and causing prices to sag.”