Home prices in Metro Vancouver to fall 8.5 per cent: report

Near double-digit correction predicted as 'sanity returns' to market

After huge home price gains in 2016

After huge home price gains in 2016

A gloomy new real estate forecast predicts an 8.5 per cent drop in home prices in 2017 across Metro Vancouver.

The report released by Royal LePage indicates the market decline would likely be worse if not for the “remarkably resilient” condo sector, which offers more affordable prices, and the region’s nation-leading economy.

“It is expected that Greater Vancouver will experience a near double-digit correction in the new year, as sanity returns to the marketplace, causing the region to give back much of the appreciation witnessed in the first half of 2016,” said Randy Ryalls, general manager of Royal LePage Sterling Realty.

“However inventory will continue to be the story in the new year, as any movement within the market will be exaggerated at their current, extremely low levels, meaning that if sentiment remains unchanged, conditions could worsen and prices may fall even further.”

The report also predicts foreign investment in Metro Vancouver will wane further due to the foreign buyers’ tax and China’s imposition of new, stricter requirements on currency conversions.

It says the region’s biggest price gains of 2016 came in West Vancouver, where aggregate home prices soared 32.8 per cent during the year to $3.57 million.

“Severe affordability issues, brought on by rapid appreciation through the year has caused sales activity to slow, particularly in the region’s near million-dollar condominium market, where prices depreciated by 7.6 per cent on a quarter-over-quarter basis.”

In Surrey, aggregate home prices (blending different home types) climbed 22 per cent year-over-year to $765,000.

“Extremely low inventory levels, new mortgage stress tests and the threat of lenders hiking interest rates have all given pause to many attempting to enter the market, particularly in the detached segment where affordability has made prospective purchasers question their buying power,” the report observed.

Langley saw aggregate home prices rise 25.7 per cent to end the year at $786,720.

While markets in pricier parts of Metro began to struggle in the latest quarter, the report says many buyers were drawn east to areas like Langley in search of affordability, resulting in more sales and competition over listings.

Just Posted

Reinhard “Bud” Loewen has now been charged with 21 counts of sexual assault related to his massage business. (Facebook photo)
Former Abbotsford masseur now faces 21 counts of sexual assault

Bud Loewen of Bud’s Massage Therapy initally faced three charges

Dr. Euiseok Kim is the medical director of the new Abbotsford post-COVID-19 recovery clinic. (Submitted)
Post-COVID-19 recovery clinic opens in Abbotsford

New facility following model of first clinic which opened in Surrey

Two small dogs were also discovered by the officer, one had died, and the other was taken by animal control and sent for veterinary care with the BC SPCA. (File Photo)
Body discovered in parked van in Mission with 2 dogs, 1 dead

Remains in state of decomposition, surviving dog sent for veterinary care with BC SPCA

....
Abbotsford’s Callum Pilgrim named as alternate on Olympic softball team

W.J. Mouat grad could potentially suit up in the red and white in Tokyo later this summer

An avalanche near Highway 1 in Glacier National Park. Avalanche Canada will benefit from a $10 million grant from the B.C. government. (Photo by Parks Canada)
Avalanche Canada receives $10-million grant from B.C. government

Long sought-after funds to bolster organization’s important work

Over the years, police have worked with sketch artists to draw what the boys could have looked like at the times of their deaths. (Vancouver Police Department)
DNA breakthrough expected in cold case involving murdered Vancouver boys, 7 and 8

Forensic analysts are working to identify relatives of the children, whose bodies were found in Stanley Park in 1953

Livestock competitions have been part of the Pacific National Exhibiton for more than a century. (Maple Ridge News files)
B.C. provides $50 million to keep major tourist attractions going

Tour bus companies also eligible for latest COVID-19 aid

The George Massey Tunnel will be closed overnight May 28 and 29 to test the tunnel’s fire suppression system and overhead lane control signals. (Black Press Media file photo)
Overnight Massey Tunnel closures coming May 28, 29

Closure to allow safe testing of tunnel’s fire suppression system and overhead lane control signals

Derek Descoteau with his trusty dog Harvey. (Photo submitted)
Friends provide continuing comfort for family in wake of unresolved senseless B.C. murder

Case remains before the courts five years after Derek Descoteau’s abrupt stabbing death in Chemainus

A prowling coyote proved no match for a stray black cat who chased it out of a Port Moody parking lot Friday, May 14. (Twitter/Screen grab)
VIDEO: Cat who chases away coyote asked to join Port Moody, Vancouver police 

Caught on camera Friday, the black cat jumps out from under a parked car and runs the wild animal out of a vacant lot

The top photo is of a real carbine rifle, while the bottom photo is the airsoft rifle seized from a Kelowna man on May 15. (Contributed)
RCMP issue warning: ‘Imitation firearms need to be dealt with responsibly’

A man brandishing his airsoft rifle in public had his weapon seized by Mounties on Saturday

Abbotsford Regional Hospital. (Black Press Media files)
Canada marks 25,000 COVID-19 deaths since the pandemic began

6 in every 10,000 Canadians died of COVID-19 since March 9, 2020

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Most Read