The sales pace for May 2019 home sales was subdued while the rate of price decline slowed down considerably. The spokeperson for REBGV cited "High home prices and mortgage qualification issues caused by the federal government’s B20 stress test remain significant factors behind the reduced demand that the market is experiencing today"
home prices Last month’s sales were 22.9 per cent below the 10-year May sales average and was the lowest total for the month since 2000.
Benchmark Prices
Year over year, May 2019 home sales for detached homes and condos were maintained around the 2018 levels. However, townhouse sales was lower by about 13% compared to 2018.
Slower sales and steady addition of new inventory increased the pressure for home sellers to adjust their selling prices. Yeare over year, detached homes dropped the most by 11.5% while both townhosues and condos posted declined 7.6% and 7.3% respectively.
- Detached homes - 11.5% lower than a year ago.
- Townhouses - 7.6% lower
- Condo sales - 7.3% lower.
Dirty Money Impact On Home Prices
Canadian real properties were reported to be used to launder dirty money from corruption and illicit drugs over the years.
In the Vancouver region, where housing prices rose more than 70% in five years, the extend to which dirty money helped to lift the real estate prices is unkown. It is quite certain that dirty money would have boosted a very significant gain in the region.
