Lower Mainland real estate boards are expected to release their latest monthly reports soon.
By all indications, the markets marked a further slowdown in July 2021.
The drop is most pronounced in single-family homes, which drew higher prices at the height of COVID-19, as buyers wanted larger spaces to weather the pandemic.
Figures analyzed by real estate site Zealty.ca indicate that 1,041 single-family homes were sold in markets served by the Real Estate Board of Greater Vancouver (REBGV) in July 2021.
This number represents an 18% month-over-month decrease from June 2021 and a 7.4% decrease from July 2020.
The same picture emerges from the markets served by the Fraser Valley Real Estate Board (FVREB).
In July 2021, real estate agents in this region sold a total of 831 single-family homes.
Sales represent a decrease of 12.7% from June 2021 and a decrease of 13.7 from July 2020.
It’s the same story for the Chilliwack and Region Real Estate Board (CADREB).
In July 2021, a total of 171 single-family homes were sold in the region.
The number marks a decrease of 27.8% from June 2021 and a decrease of 16.2% from July 2020.
All of this means one thing to Adam Major, CEO of Zealty.ca and management broker for site owner Holywell Properties.
“This is a sign that the COVID mania that is spurring demand for more space and a suburban single-family home is finally being reversed,” the major said. Law.
In the combined markets covered by REBGV, FVREB and CADREB, a total of 2,043 single-family homes changed hands in July 2021.
This means a decrease of 16.9% compared to June 2021 and a decrease of 10.8% compared to July 2020.
Major also looked more than 10 years back at the REBGV covered region which includes Vancouver but not Surrey, which falls under the FVREB.
Major noted that the 1,041 single-family home sales in Metro Vancouver in July 2021 are “actually lower than the 10-year average of 1,053 for July.”
“For sales of single-family homes, this July is the sixth busiest July in a decade, so the single-family home market is definitely cooling off,” noted the leader of Holywell Properties.
In the city of Vancouver, single-detached homes saw sales decline month over month, but still registered annual increases.
East Vancouver saw 144 single-family homes sold in July 2021, a decrease of 7.1 from June 2021 and an increase of 2.1% from July 2020.
In Vancouver’s more expensive West Side, 93 single-family homes changed owners in July 2021, a 19.1% drop from the previous month and a 20.8% increase from July 2020.
As for condos in Greater Vancouver, the picture is a little more complex in July 2021.
Last month, real estate agents with REBGV sold 1,675 condo units, a decrease of 5.8% from June 2021 but an increase of 19.5% from July 2020.
“The 1,675 apartment sales are the second busiest July in a decade, so the low interest rates and cheap mortgages that are still available are certainly helping to keep the market active,” Major said. .
Also in the REBGV markets, a total of 610 townhouses were sold in July 2021, marking a decrease of 16% from the previous month and a slight annual increase of 0.5% from July 2020.
“Sales of townhouses in Metro Vancouver are almost flat year over year,” Major noted.
Real estate markets peaked in Metro Vancouver and the rest of the Lower Mainland in March 2021.
That’s all in the rearview mirror now.
“At the end of the day, although the market has slowed 42% since March,” Major said of Greatre Vancouver.
The positive point is the condo market.
“The apartment market remains active with apartment prices hitting a new record,” Major noted.
In July 2021, the median price of an apartment in Metro Vancouver was $ 650,000, or $ 649,900 to be exact.
“The median apartment price is up 10% year-over-year from the $ 590,000 price recorded in July 2020,” Major explained.
There are other things going on for the real estate market.
The Bank of Canada led by Tiff Macklem maintains its key rate at its lowest level of 0.25% until the first half of 2022.
Meanwhile, Canada’s federal government announced on July 30 that it was extending COVID-19 benefits and business support.
“Thanks to Tiff and the free slot machine for keeping the party going! Major said tongue in cheek. “Hopefully they never take the bowl of punch!” “