Residential markets in the Greater Vancouver area took a nosedive in January, with the number of sales and average prices both dropping by double digits, according to a report released on Wednesday.
A total of 1,553 units were sold in Greater Vancouver last month, a 40% decrease from the 2,574 unit sales recorded in the same period last year, according to the British Columbia Real Estate Association (BCREA), citing data from the Multiple Listing Service.
On average, the sales price was C$878,242 (US$671,208), down 19% year-over-year. Last January, the average home price in Greater Vancouver was over C$1.08 million.
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The association doesn’t collect separate data for the luxury submarket, but this segment has experienced some softening along with the general market, Cameron Muir, chief economist at BCREA, told Mansion Global.
The drop-off in Vancouver’s high-end market is partly due to the extra 15% foreign buyer’s tax implemented last August, "but it’s also a market correction from a very strong run-up cycle with significant price appreciations," Mr. Muir said, noting that prices for high-end properties fluctuate more rapidly than in the mainstream market.
Overall, housing demand across the province of British Columbia returned to long-term average levels, according to Mr. Muir. About 4,487 residential unit sales were recorded in January, a 23% decrease from the same period last year. The average sales price was C$621,093, down 17.5% year-over-year.
Write to Fang Block at fang.block@dowjones.com