High inventory of detached homes in Vancouver’s west side and in West Vancouver means prices are coming down.
According to the Canada Mortgage and Housing Corporation’s latest housing market assessment, price growth has been slowing “considerably” over the last two quarters in Vancouver.
“Declining prices for detached properties in some areas, particularly Vancouver’s Westside and West Vancouver, are due to high inventories that have accumulated due to sustained falling sales volumes,” according to a CMHC statement.
Canada’s housing market as a whole remains vulnerable, according to the data collected in late March and market intelligence dated June 2018.
The CMHC’s housing market assessment provides an analysis of Canada’s housing market in 15 census metropolitan areas based on four main factors: the rate at which sales outpace new listings, housing price acceleration, overvaluation and overbuilding.
“At the national level a high degree of vulnerability continues due to moderate levels of price acceleration and overvaluation,” said CMHC chief economist Bob Dugan.
“Regionally, we are seeing a fair amount of differences, for instance in major centres in Ontario and British Columbia a high degree of vulnerability remains while in the Prairie and Atlantic markets range from moderate to low.”
STAFF REPORTER Updated: July 26, 2018
