According to the Real Estate Board of Greater Vancouver (REBGV), home sales fell a whopping 43 percent last month from July 2021 and 23 percent from last June.
Sales in the region were 1,887, 35.2 percent below the July 10-year sales average.
The board says these numbers indicate a new market cycle – marked by declining demand for homes – is underway.
“I think home buyers and sellers are taking a breather after a hectic two-year period,” said Craig Munn, vice president of communications at REBGV
Munn said buyers’ caution is being driven by rising interest rates and inflation concerns.
“Home buyers are wisely taking the time to assess what these changes mean for their own personal circumstances.”
The board says part of the new market cycle will include a gradual rise in the number of homes for sale, but last month saw a total of 3,960 homes, down nearly 10 percent from July 2021 and 25 percent from June 2022.
Meanwhile, the composite benchmark price for the region was over $1.2 million last month, up about 10 percent from July 2021 and down two percent from June 2022.
Munn said prices have begun to fall over the past three months, but at a gradual rate of about two percent per month.
‘A very normal reaction in the market’
Brendon Ogmundson, chief economist at the BC Real Estate Association, said demand is cooling across the county.
“It doesn’t matter which market you look at, sales are generally about 20 to 25 percent below what is normal for this time of year,” says Ogmundson.
Ogmundson said that while prices are falling slowly, a major price drop is highly unlikely.
“What we’re seeing is a very normal reaction in the market to very high interest rates.”