The sales graph for the month of August confirms we are seeing a shift in the detached house sales in the Greater Vancouver residential real estate market.
The graph shows that the number of sales of detached houses has been trending steadily lower from the most recent peak in March. The portion of the graph in 2016 follows a trend similar to that of previous years, but reaches a higher peak in the spring and has fallen to a deeper trough than previous Augusts have experienced.
At least some of this drop in activity can be attributed to the 15% Foreign Buyers’ Tax introduced at the beginning of August, but we won’t really know to what extent the tax has influenced the market until we see a few more months’ trend lines.
We may see prices start to fall in a month or two if buyers continue to hold back. However, if the activity starts up again, pent up demand may just as likely push prices back up quickly.
This could be a great time for buyers to choose wisely and negotiate hard – but it may not last. Sellers may want to have a current evaluation to make sure they are not overpriced for today’s conditions.
Call me for the best advice – I’ve helped my clients buy and sell in all types of market.
Source: Real Estate Board of Greater Vancouver
Foreign Buyers’ Tax Effect
Sales stats for the month of August seem to indicate a shift in the residential real estate market.
The chart shows that the number of sales of detached houses was down significantly for the month of August compared to the same month for the last 3 years, and comparable to the number of sales 4 years ago, in 2012.
We can assume that at least some of this is the result of the Foreign Buyers’ Tax introduced in August – although how much is attributable to the tax won’t be known for sure until we see a few more months’ trends.
So far, prices of “typical” homes have not declined significantly.