Home sales in Vancouver fell to their lowest level in two decades last year as new rules governing foreign ownership in the province took hold.
The total number of homes sold in Metro Vancouver last year fell to 24,619, marking the lowest level since 2000, according to data from the Real Estate Board of Greater Vancouver. That's down 31.6% from nearly 36,000 home sales in 2017 and 25% below the city’s 10-year average.
Additionally, the average home price in Vancouver dropped in 2018. The composite benchmark price for a home, which includes detached properties, townhomes and condominiums dropped 2.7% from December 2017 to finish the year at $1,032,400. Detached homes led the fall as their benchmark price dropped 7.8% from December 2017 to $1,479,000.
Townhome and condominium prices saw small gains during 2018. The benchmark price of a townhouse rose 1.3% year-over-year to $809,700, while the benchmark price of a condominium advanced 0.6% to $664,100.
The decline in sales and prices is being blamed on new rules governing foreign ownership that has dissuaded buyers from Asia, and new mortgage rules in Canada that have made it more difficult for people to enter the housing market.
"As the total supply of homes for sale began to accumulate in the spring, we began to see downward pressure on prices across all home types throughout the latter half of the year," said REBGV president Phil Moore in a news release.
