Home sales in Greater Vancouver have fallen from year-ago levels due to rising interest rates.
However, prices have yet to follow.
The real-estate board has reported that the benchmark price of all residential properties in its markets in July 2022 edged up to $1,207,400.
That’s up 10.3 percent on an annual basis compared to July 2021.
Month-on-month, the July benchmark represents a 2.3 percent decrease compared to June 2022.
It’s the same story for each property type.
The benchmark price for a detached home stood at $2,000,600.
This marks an 11 percent increase from July 2021, and a 2.8 percent decrease compared to June 2022.
Condos had a benchmark price of $755,000.
This represents an 11.4 percent increase from July 2021, and a 1.5 percent decrease from June 2022.
The benchmark price of an attached home or townhouse in July 2022 was $1,096,500.
The number means a 15.8 percent increase from July 2021, and a 1.7 percent decrease compared to June 2022.
For context, interest rates were at historic lows in 2020 and 2021.
The Bank of Canada started hiking interest rates in March 2022.
The fourth and latest increase happened on July 13, when the central bank brought its interest-setting rate to 2.5 percent.
During the COVID-19 pandemic, the overnight rate was 0.25 percent.
The Greater Vancouver real-estate board stated in a media release Wednesday (August 3) that the market has “entered a new cycle”.
It’s one “marked by quieter home buyer demand and a gradual rise in the supply of homes for sale”.
A total of 1,887 homes changed hands in July 2022.
The numbers represents a 43.3 percent decrease from the 3,326 sales recorded in July 2021.
On a month-on-month basis, last month’s sales represent a 22.8 percent decrease from the 2,444 homes sold in June 2022.
“Home buyers are exercising more caution in today’s market in response to rising interest rates and inflationary concerns,” board chair Daniel John said in the media release.
The Greater Vancouver real-estate board covers Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.