Vancouver Home Prices See 5-Figure Monthly Drop, As Resistance Suddenly Appears
Greater Vancouver real estate prices have been on a tear, but that may be coming to an end. Real Estate Board of Greater Vancouver (REBGV) data shows prices generally climbed in June. Broken down by region though, the trend isn’t quite as positive. In parts of the City of Vancouver, home prices have seen 5-figure drops in just one month.
Home Prices In The City Are Weaker Than The Suburbs
The price of a typical home advanced last month, but it was a much smaller increase than seen in months prior. The composite benchmark hit $1,175,100 in June, up 0.2% ($2,346) from a month before. That made home prices 14.5% ($148,812) higher compared to the same month a year ago. Though most of these gains were made further from the city center.
In the City of Vancouver, the composite price was a little more mixed. In Vancouver East, the benchmark hit $1,207,500 in June, actually falling 0.2% ($2,420) from the month before. In Vancouver West, the typical home reached $1,373,000, up 0.2% ($2,741) over the same period. The latter sounds impressive, but those prices are still lower than they were three years ago.
Greater Vancouver Composite Benchmark Price
The price of a typical home across Greater Vancouver, in Canadian dollars.
Source: REBGV; Better Dwelling.
Vancouver Detached Prices Are Falling In Half The City, But Soaring In The Suburbs
Breaking it down by segment, most of the weakness is observed in the detached homes. The detached benchmark price was $1,801,100 in June, flat from a month before, which is odd… but what happened. Prices are still 22% ($324,789) higher than last year, but only 13.3% higher over the past 3 years according to the board. That works out to ~4.25% compound annual growth (CAGR), which doesn’t have the same wow-impact, does it?
Detached prices in the City of Vancouver were a little more mixed once again. In Vancouver East, the detached benchmark hit $1,696,500 in June, down 0.8% ($13,681) from a month before.
In Vancouver West, they actually climbed — significantly. There the benchmark climbed to $3,458,300, up 0.5% ($17,205) from a month before. A similar deal to the Greater Region though, where they climbed 11.2% in the East, and 2% in the West, over the past 3 years. Whether that means growth is still absurd, or relatively stable growth is up for debate.
Greater Vancouver Composite Benchmark Price Change
The annual percent change of a typical home across Greater Vancouver.
Source: REBGV; Better Dwelling.
Greater Vancouver Condos Prices Have Seen An Abrupt Slowdown
The Greater Vancouver condo market only just got out of its rut, but is now already slowing down. The benchmark condo price hit $737,600 in June, up 0.1% ($737) from a month before. Compared to a year ago, this is 8.9% ($60,281) higher — almost all of those gains starting in January.
That said, $737 in a month is quite an abrupt slowdown, and prices are only 2.5% higher over the past 3 years. A lot of hype in the news for less than 1% annual growth for three years.
Condos in the City of Vancouver are, as you may have guessed, diverging. In Vancouver East, the condo benchmark hit $636,900 in June, up 0.1% ($636) from a month before. In Vancouver West, the benchmark was $1,135,400, up 0.4% ($4,524) over the same period.
The annual increase in the East (8.3%) and West (5.3%) is very ambitious by itself. Though prices over the past 3 years only increased 2.6% and dropped 1.4%, respectively.
Greater Vancouver real estate prices are up a lot from last year, but the gains are slowing. Monthly increases have abruptly decided that they were no longer booming. It doesn’t even resemble the same market seen just a few months ago.
City of Vancouver home prices have been rising very fast, which is what people are talking about. The narrative is a little too focused though, failing to compare other timelines. Over the past three years, many of these segments have seen much smaller price growth. If you bought last year, congrats. If you bought a few years ago, you may not have made any money yet.
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