Real estate activity through July continued to moderate with the market trending to more normal conditions after the torrid pace of earlier this year.

 

Leading up to the announcement of the 15% Foreign Buyer Tax, we had been experiencing a shift in demand. In general, scheduled showings and open house traffic through our listings has been down from earlier in the year. Although some of this may be seasonal there is a sense  buyer confidence isn’t as high, either as a result of fatigue from higher prices, or changing market expectations. This has led to far fewer multiple offers situations, the return of conditional offers, a greater percentage of properties selling below list price as opposed to over, and the return of price reductions. All signs of a more normal market.

 

In North Vancouver sales were down 16% from July last year, and 30% from June 2016, while inventory rose 19% from July 2015. Sales and new listings diverging is representative of a shifting market and a sign of a move towards greater balance.

 

In West Vancouver sales were down 36% from both July last year and June 2016, while new listings were flat from July and down 7% from June.

 

Will the newly introduced tax further cool the market? For now we do not know. But the uncertainty it brings will surely affect buyer confidence.

 

To read the Real Estate Board of Greater Vancouver's Stats report click here