Metro Vancouver’s housing market continues to slow following a frenzied pace earlier in the pandemic, but prices remain stubbornly high.
The Real Estate Board of Greater Vancouver (REBGV) says 3,326 homes were sold in July, 6.3 percent more than July 2020. But 11.6 per cent fewer homes were sold compared to this June.
“Moderation was the name of the game in July,” said REBGV’s economist Keith Stewart.
“Home sales and listings fell in line with typical seasonal patterns as summer got going in earnest in July. On top of moderating market activity, price growth has leveled off in most areas and home types.”
The MLS Home Price Index composite benchmark price for all residential properties is $1,175,500, 13.8 per cent higher than July 2020 and unchanged from the previous month.
Detached home prices are up the most compared to last year. The benchmark price is up 21 per cent to $1,801,100, but unchanged compared to the previous month.
Why home prices haven't gone down
Along with low mortgage rates, one of the reasons prices are up so much is a lack of available housing supply for sale. While bidding wars aren’t as intense as they were a few months ago, it’s still a very competitive market.
The total number of homes for sale on the MLS system is 9,850, which is 18.5 per cent lower than July 2020 and 9.1 per cent lower than June 2021.
“Low housing supply remains a fundamental factor in Metro Vancouver’s housing market,” said Stewart.
"Home sales remain above average and we’re starting to see price increases relent as well. Going forward, the supply of homes for sale will be among the most critical factors to watch. This will determine the next direction for house price trends."
Realtors say there's also a lack of rental supply, leading to bidding wars in that part of the market.
Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.