Real estate prices fall as home sales cool

Real-estate prices in Greater Vancouver are dropping and the number of listings is increasing, the Real Estate Board of Greater Vancouver said yesterday.

The changes continue a recent, dramatic departure from the searing housing market of recent years, when annual price increases in the double-digit percentages were common.

Housing prices in every category have continued to decline since May, the board said.

"We're seeing more price reductions in properties listed on the market, which is having a levelling impact on the housing price increases experienced at the end of last year and into the first quarter of 2008," board president Dave Watt said in a news release.

The benchmark price for residential properties has declined 2.1 per cent since May, hitting $556,605 at the end of July.

The board reported 2,174 property sales in July, a 44-per-cent decline from July last year. July listings this year increased 24 per cent over July 2007 to 6,104.

The drop in prices cover all property types, the report said.

Since the end of May, the average detached home has declined 2.3 per cent, townhouses one per cent and apartments two per cent.

The price of housing in all categories last month was higher than in July 2007.

Last month the average price of a detached home was $753,165, up 5.4 per cent from July last year.

The number of homes sold from May to July 2008 declined 44 per cent from the same period last year.

In July, a typical townhouse was $473,953, 5.7 per cent higher than July 2007. Property sales declined 46.8 per cent with 381 units sold.

The typical price of an apartment in July was $381,687, 4.7 per cent higher than July 2007. A total 966 units were sold, down 42.3 per cent from last year.

(prepared by Katie Mercer/Vancouver Province)