l According to Business in Vancouver, stricter mortgage qualification legislation continues to play a part in the real estate market across Greater Vancouver and the province as a whole. The data comes from the British Columbia Real Estate Association—and for home buyers and sellers, the market conditions are considered balanced.
Home sales in Vancouver were down 37.6% year-over-year in June. Compared to 2,467 units sold this year, 3,953 sales were recorded in the same period last year.
Brendon Ogmundson, BCREA’s deputy chief economist, says that “Lower demand as the result of higher mortgage rates and stringent mortgage qualification rules are bringing most markets around the province back into balanced conditions.”
In addition, the effect of the new mortgage lending requirements implemented by the Office of the Superintendent of Financial Institutions Canada (OSFI) is still being felt.
Of course, the real questions for most home consumers is how all this is impacting property prices. However, in spite of all the changing conditions, prices for homes sold in Greater Vancouver have remained relatively steady. There’s more room for negotiation when the prices tag hits between hits between $2 and $3 million, but demand for homes under $1 million is still outstripping supply. In fact, a report released by the Canada Mortgage and Housing Corporation on Thursday reports that condo prices are up across the region.
People jumping into the market now have room to shop and negotiate, but overall the prices haven’t changed much, especially in the lower bracket.
To learn more about townhouses in Vancouver and how prices are tracking in different neighbourhoods, contact Ariane Benjamin at 604-779-1500