But an expert argued that it’s still way too early to tell if the Vancouver market is poised for a crash, GlobalNews.ca
“It’s really hard to say if it’s just cooling off. It could be that everybody who could or would buy at those really high prices a couple months ago are now already in, and now we just really see how the market is retracting itself,” according to Andy Yan, acting director of The City Program at Simon Fraser University.
Real estate agent Brent Eilers, who collated the data from MLS listings, said that these developments confirm what he has long warned about: a major slowdown brought about by Vancouver’s non-stop price growth, which has seen the benchmark price for a detached home reach almost $3.4 million in July (compared to the median household income of $84,345).
“The market in West Van is up 450 per cent since 2001. So is everyone making 600 per cent more income than they were so they can pay their taxes and buy their houses? Of course not. So how has this inflation been financed? By offshore money and record debt,” Eilers said.
The agent added that sales have been declining even prior to the implementation of a new 15 per cent foreign buyer’s tax aimed at cooling down the market. MLS data revealed that July saw only 44 sales in West Vancouver, down from 80 a year before. June had 74 transactions, down from 102 in 2015.
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MLS data from the first two weeks of August revealed that only 3 home sales have transpired in Vancouver in that period, a far cry from the 52 transactions during the same time last year.