Vancouver home prices just fell the most since 2008, extending declines in Canada’s most expensive city
- The fall of 1.9 per cent in the past month has been blamed by the Canadian Real Estate Association on tougher mortgage rules
- Vancouver has also been subjected to a series of demand-curbing measures including a foreign-buyer tax, a speculation tax and a vacant homes tax
Home prices in Vancouver fell 1.9 per cent in November from a month earlier, the most in a decade, extending a recent run of declines for Canada’s most expensive real estate market.
The figures suggest momentum earlier this year may have been just a blip, as consumers adjust to tougher federal mortgage qualification rules. After rebounding to a record in May, prices nationwide have dropped for six straight months, the Canadian Real Estate Association reported Monday, and are hovering at levels little changed from mid-2017, when interest rates started to rise.
“The decline in home ownership affordability caused by this year’s new mortgage stress-test remains very much in evidence,” said Gregory Klump, CREA’s Chief Economist.
“While national home sales were anticipated to recover in the wake of a large drop in activity earlier this year due to the introduction of the stress-test, the rebound appears to have run its course.”
Vancouver has also been subjected to a series of demand-curbing measures including a foreign-buyer tax, a speculation tax and a vacant homes tax, amid concerns about the role of foreign money in the city.