Canada's Housing Bubble

Sep 02, 2010 Derrick Penner Vancouver Sun

Metro Vancouver - Lower Mainland home prices continued to edge lower in August in an environment of declining sales, regional real estate boards reported Thursday.

The benchmark price, an average for typical homes sold, was down almost three per cent in most of Metro Vancouver hitting $576,597 in August compared with a peak of $593,419 in April, the Real Estate Board of Greater Vancouver said.

That price was achieved in an environment that saw realtors process 2,202 sales through the realtor-controlled Multiple Listing Service, which was a 36-per-cent decline from the same month a year ago.

In the Fraser Valley, the benchmark average for a typical detached home dipped almost two per cent to $510,107 in August compared with $520,423 in April.

Sales in the region were down 44 per cent in August to 997 units compared with 1,786 units sold last August.

Jake Moldowan, president of the Vancouver real estate board, said his region is experiencing a buyer's market with moderate demand and a healthy, though slowing, stream of new supply.

“The last few months have also shown some stability when it comes to price fluctuations in the region, which is a welcome trend after reaching record highs in spring,” Moldowan said in a news release.

While lower than their peaks, prices remain above their levels of last August.

Inventory levels in both board areas remained elevated compared with last year, but saw the rate of new units being added slow.

In the Vancouver board area, total inventory sat at 15,421, which was 29 per cent higher than a year ago, but sellers added only 3,750 units during the month which was down six per cent from July.

The Fraser Valley's total inventory of 10,287 was almost 15 per cent higher than last August, but the 2,092 listings added in August represented an 11-per-cent decline from July.

“In August, sellers in the Fraser Valley took as much of a break as buyers,” board president Deanna Horn said in a news release.

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