Home prices in most Lower Mainland markets slip below 2007 levels

Oct. 3, 2008 | Market Update | By Aaron Rossetti

Detached home prices in September slipped below 2007 levels in most markets across the Lower Mainland in the environment of declining sales and rising inventories, local real estate boards reported Thursday.

The Real Estate Board of Greater Vancouver reported that its so-called benchmark price for a typical detached house has declined 5.8 per cent since May and, at $726,331, resting 1.6 per cent below September 2007.

The year-over-year price changes vary by market from up 3.6 per cent in Richmond where the benchmark was $$754,481 to down 20.4 per cent in Port Moody where the benchmark was $619,891 in September.

Total sales of all property types recorded through the MLS® were 1,585 across the REBGV area in September, down 43 per cent from September a year ago.

REBGV September new listings, meanwhile, were up 29 per cent to 6,142 from the same month a year ago.

 "After five years of unprecedented increases, housing prices are beginning to realign," Dave Watt, REBGV president, said in a news release.

 "Although the economic situation in the United States has affected consumer confidence globally, the consensus view remains that our local housing market is underpinned by solid economic fundamentals."

 In the Fraser Valley, the September average MLS® detached home price of $522,816 was 2.4 per cent below the average price in the same month a year ago.

Year-over-year price changes on detached homes ranged from up 4.3 per cent in North Delta to down 6.3 per cent in Abbotsford.

Total MLS® sales of all property types across the Fraser Valley declined 26 per cent in September to 980 compared with the same month a year ago.

Meanwhile the Fraser Valley's inventory of unsold homes rose to a new high of 12,379, up 56 per cent from the same month a year ago.

"Although our economic fundamentals remain solid, it's fair to conclude that the U.S. financial situation is affecting consumer confidence here," Kelvin Neufeld, president of the Fraser Valley Real Estate Board said in a press release.

"People are closely following what's happening south of the border, they're watching the financial markets and in some cases [are] delaying big-ticket purchases that they feel aren't essential right now."