Vancouver home sales sink 22.8% in July as rate hikes bite

Home sales tumbled in Vancouver last month, adding to evidence that interest rate hikes are pushing many would-be buyers to the sidelines.

The Real Estate Board of Greater Vancouver (REBGV) said in a release on Wednesday there were 1,887 sales across the region last month; that represents a 43.3 per cent plunge from a year earlier, and a drop of 22.8 per cent from June. The real estate board added that July’s sales activity was 35.2 percent below the 10-year average for the month.

Despite the plunge in sales, prices were relatively stable. The REBGV said the benchmark price for Metro Vancouver dipped 2.2 per cent sequentially to $1,207,400. Compared to a year earlier, the benchmark price rose 10.3 percent.

“Homebuyers are exercising more caution in today’s market in response to rising interest rates and inflationary concerns. This allowed the selection of homes for sale to increase and prices to edge down in the region over the last three months,” said REBGV Chair Daniel John in a release.

The Bank of Canada has raised its target for the overnight rate four times this year, most recently with a full-point hike in July to 2.5 per cent.

“Homebuyers are exercising more caution in today’s market in response to rising interest rates and inflationary concerns. This allowed the selection of homes for sale to increase and prices to edge down in the region over the last three months,” said REBGV Chair Daniel John in a release.

The Bank of Canada has raised its target for the overnight rate four times this year, most recently with a full-point hike in July to 2.5 per cent.

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