Metro Vancouver home prices dropped to help housing affordability
Metro Vancouver home prices dropped to help housing affordability, experts say that it is significant relief which is unlikely for shoppers at lower end of Vancouver Real Estate Market.
According to the figures which were released by the Real Estate Board of Greater Vancouver, Home Sales are below 10-year average sales, and price of detached homes dropped marginally last month in the half of the areas which were tracked.
Home price in Vancouver dropped down and have been in expensive neighbourhoods, including the West Vancouver and West Side of Vancouver, that have shown decrease in home price by 4% over last 6 months.
It’s not surprising to Cameron Muir, Chief Economist for B.C. Real Estate Association, who says that top of the housing market is the most volatile part.
With new taxes on buyers from foreign, empty homes and speculators, for detached home costing is more than $3 million owners who will too pay both the extra property transfer tax and the new school tax.
Muir also said that effect of taxes will be limited since “just 3% of homes sell for more than $3 million.”
Drop in home price not trickling down
Overall home prices are flat across Vancouver Real Estate Market, Muir cautions that if anyone is looking for significant price relief at lower end which is likely to be very disappointed.
That’s the reason that unintended consequences of factors which are designed to cool down Vancouver Housing Market and is still continuing to push home prices at the lower end.
In fact, sales of apartments dropped down by 29% over last year and benchmark price still has continued to go up by 20% over the same period of time.
Phil Moore, President of Real Estate Board of Greater Vancouver, agrees that the rising interest rates and new mortgage stress test are driving home prices up at the lower end, where supply still remains limited.