A TD Bank forecast that BC median home prices will fall 8.1 per cent through next year is looking very bullish in Metro Vancouver as sales prices in June fell for the third month in a row. The June composite benchmark price for all residential properties in Greater Vancouver was $1,235,900, down 2 per cent from May and down 2.2 per cent over the past three months, the Real Estate Board of Greater Vancouver reports. Single-family home prices recorded the largest dollar drop, averaging $37,000 per month since March to a June benchmark of $2,058,600. In Vancouver’s West Side market, the median price for a detached home fell $194,000 from May to $3,063,500 in June. “We are seeing downward pressure on home prices as we head into the summer due to reduced homebuyer activity rather than increased supply,” said Daniel John, President of REBGV. Total home sales in Greater Vancouver totaled 2,444 in June 2022, down 35 per cent from June 2021 and down 16.2 per cent from the 2,918 homes sold in May 2022. The Fraser Valley Real Estate Board (FVREB) processed 1,281 sales in June, down 5.8% from May and down 43% from June last year. “In just two months, our market as a whole has shifted in balance, primarily due to declining demand for single-family homes,” said FVREB President Sandra Benz, who noted the impact of rising mortgage rates. The Fraser Valley single-family home price fell 3.5 per cent, or $57,855, month-over-month to a June benchmark of $1,653,000, the Fraser Valley Real Estate Board reports. The Bank of Canada, which has raised its key interest rate by 75 basis points since March, is expected to raise the rate from 50 to 75 basis points on July 6 to fight inflation. This will cause further declines in home sales and prices, according to TD Bank. In a June 30 report, TD predicted that BC will see one of the sharpest corrections, with median home prices falling 8.1% in 2023. Falling prices and increasing supply should be welcomed by home buyers, according to estate agents. “In most areas of Metro Vancouver and especially at higher price points, it’s now a buyer’s market,” said Kevin Skipworth, managing partner of Dexter Associates Real Estate in Vancouver. He pointed out that the city of Vancouver’s mattress sector is particularly attractive due to increased supply and falling prices. The benchmark price of a townhouse in the city fell nearly 2 percent in June from a month earlier, and apartment prices fell 2.3 percent month-on-month, with the biggest drop on the trendy West Side. “Vancouver’s West Side has seen townhouses and condos increase to five months of supply from three months last year,” Skipworth said. “What a change and an opportunity compared to a year ago. Buyers, your time is now.”
