Vancouver is experiencing a housing market meltdown, as the market plunges in the face of an impending market correction, according to the first official estimate.
The latest data shows that the average sale price of homes in the city plunged 20 per cent to $2.8 million in the first seven months of the year, according the Vancouver Real Estate Board.
The average sale of homes dropped to $1.7 million, while detached homes sold for an average of $2,935, according Toonox.
The report comes just a week after the board released its most recent monthly sales report, which showed a decline in the number of homes sold, as well as the number with a mortgage.
In the past year, the board has reported an average monthly price of $1,824 for detached homes, and $1;639 for condos.
The Vancouver Real Property Board said the average price drop over the last six months was due to a reduction in demand and lower demand than in previous years.
The data also showed that the number and average number of detached homes were down slightly over the past three months, while the number dropped from 917,958 units to 849,913.
The board reported that the drop in sales was primarily due to low sales activity, which decreased to 2,739 units in April from 3,062 units in March.
However, the report also showed a drop in the supply of homes, which saw an increase in April and March from 3.4 million to 3.5 million units.
In March, the Vancouver Board of Trade reported an overall surplus of 539,000 homes.
The surplus has been a steady trend for the past six months.
According to the report, the real estate market in Vancouver is in its most severe downturn since the 2008-09 housing crisis.
The real estate board said it has recorded a monthly decline in sales, which includes the number that have sold.
The board said the number has dropped to 5,849 units in the same month of the previous year.
The B.C. government has been encouraging the market to slow down in order to prepare for a looming housing shortage, the B.V. Real Estate Association said in a news release.
The city’s real estate boards are urging buyers to look elsewhere for housing as prices fall, saying prices are not expected to recover until 2019.
“The market has had a good run, but there’s not a lot of confidence that prices will recover, let alone stay that way,” Vancouver realtor Andrew Tregillis told reporters Monday.
The province announced a $3.9-billion housing-related funding program in December that will fund projects to help ease the impact of a housing crisis in Vancouver.