Vancouver saw a 22.8% home sales drop amid interest rate increases 

In July, Vancouver showed a housing sales decline, supporting the idea that interest rate hikes are making many potential buyers leave the market. 

According to the recent report by the Real Estate Board of Greater Vancouver (REBGV), there were 1,887 home sales in the region last month. It represents an annual decline of 43.3% and a monthly drop of 22.8%. Home sales activity was down by 35.2% from a 10-year average for the month.

In spite of the sales decrease, real estate prices remained quite stable. The REBGV report show the benchmark price for Metro Vancouver was down by 2.2% to $1,207,400, marking an annual increase of 10.3%.

“Homebuyers are now more cautious amid growing interest rates and inflationary issues. As a result, there were more properties listed for sale and prices went down during the previous three months,” – noted REBGV Chair Daniel John.

The Bank of Canada has raised its key lending rate four times in 2022 so far, with the latest hike by 1% to 2.5% in July.