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'Supply is the biggest factor': Vancouver home prices still stubbornly high despite sales dip in August

·2 min read
A real estate for sale sign is pictured in front of a home in Vancouver, British Columbia, Canada, September 22, 2016. REUTERS/Ben Nelms
Detached home buyers continue to face the largest price increases in Vancouver (REUTERS/Ben Nelms)

Canada's highest-priced real estate market continues to cool from its earlier frantic pace, but that hasn't translated into lower home prices in Metro Vancouver.

The Real Estate Board of Greater Vancouver (REBGV) says sales of all types of homes in August were down 5.2 per cent compared to July.

Sales were up 3.4 per cent compared to August 2020 and 20.4 per cent above the 10-year August sales average.

The REBGV says people were keen to buy but they don't have a lot of options.

"August was busier than expected, and listings activity isn't keeping up with the pace of demand. This is leaving the market under supplied," said REBGV economist Keith Stewart.

The number of newly listed homes fell 7.9 per cent compared to July and 30.6 per cent compared to August 2020. The total number of homes for sale fell 8.6 per cent compared to July and 29.7 per cent compared to August 2020.

"Housing supply is the biggest factor impacting the market right now. To help relieve pressure on prices and improve peoples' home-buying options, the market needs a more abundant supply of homes for sale," said Stewart.

"Housing affordability has been a key issue in the federal election. We encourage the political parties to focus on policy solutions that will help streamline the creation of more diverse housing options for hopeful home buyers today and into the future."

Also See: The latest real estate news for housing prices, mortgage rates, markets, luxury properties and more at Yahoo Finance Canada.

Adding supply has been a key part of each party's housing plan to tackle affordability, which remains elusive in Vancouver. Prices, as measured by the MLS home price index, were basically flat in August compared to July. However, when compared to August 2020, prices were up 13.2 per cent to an average of $1,176,600.

The largest price gains have been in the detached market. The benchmark price for a detached home is $1,807,100, up 20.4 per cent from August 2020.

Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.

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