The British Columbia Real Estate Association (BCREA) released some new information on how the market is going compared to last year. To make our post a little more focused, we will be talking particularly about Greater Vancouver. In August 2015, the average residential price for a home was $900,592 and this year it has dropped to $833,065 resulting in a -7.5% change. One point to consider is that with the new 15% foreign investor tax, we see most of the interest shifting away from high-priced luxury homes on the west side of Vancouver. It is possible that the luxury homes took the biggest hit and so their prices affect the average price of a residential home.
Last year, there were 11,492 active listings in Greater Vancouver, and this year it has dropped -23% to 9,198 active listings. One of the major drivers of causing a market to skyrocket is basic supply and demand. If the 15% tax does deter some of the foreign investors, there are still the locals that have been trying to fight against these bidders. In the near future, we could see the locals feeling a burst of confidence and will want to enter the market. Will this decline in active listings cause low supply with high demand? It is still too soon to determine what will happen with our market.
Read more about the stats here.