Bouncy real-estate sales expected in Vancouver
The chief economist at Central 1 Credit Union expects real-estate sales to “bounce around” following a slow market in April.
Helmut Pastrick also acknowledged that, should sales trend down steadily, it is very likely that prices will go down.
“If we see a steady decline on sales over the next three to six months, then one would expect prices to fall, to soften,” Pastrick told the Straight in a phone interview.
A B.C. economic briefing paper recently released by Central 1 shows that total combined sales in Metro Vancouver and the Abbotsford-Mission region in April dropped five percent compared with March. It’s the lowest monthly sales level since July of last year.
Sales for the first four months of 2012 totalled 14,560 units. That’s 16 percent less than sales in the same period last year.
“Weaker market conditions will likely generate predictions for a price correction in the Lower Mainland,” the paper states. “Movements in average MLS price levels will likely add fuel to the discussion, given that the seasonally-adjusted average price in the Lower Mainland fell 2% from March to $640,750 and was down nearly 10% from the previous year.”