Residential home prices in the Greater Vancouver area slid again in November and sales were down by more than 50 per cent over last year as higher interest rates weighed on the region’s real estate market.
Data from the Real Estate Board of Greater Vancouver showed November’s residential home sales dropped 52.9 per cent to 1,614 from 3,428 sales recorded a year ago and stood 36.9 per cent below the 10-year November average. On a month-over-month basis, sales were down 15.2 per cent.
“With the most recent core inflation metrics showing a stubborn reluctance to respond significantly to the furious pace of rate increases, the Bank of Canada may choose to act more forcefully to bring inflation back toward target levels,” said Andrew Lis, REBGV’s director of economics and data analytics. “While it’s always difficult to predict what the bank will do with certainty, this persistent inflationary backdrop sets up the Dec. 6 rate announcement to be yet another increase, making holiday-season home purchases something many people may end up foregoing this year.”
However, the board said Ottawa’s promise to welcome 465,000 permanent residents in 2023, 485,000 in 2024, and 500,000 in 2025 would likely keep the real estate environment competitive, with the possibility that demand and prices will ramp up again.
“From a long-term structural standpoint, the current pace of listings and available inventory remain relatively tight when considered against a backdrop of continued in-migration to the province,” Lis said. “With the recently announced increase in federal immigration targets, the state of available supply in our market remains one demand surge away from renewed price escalation, despite the inflationary environment and elevated mortgage rates.”
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