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Metro Vancouver home sales in June dropped 35% from 2021 amid higher interest rates

Click to play video: 'Rising interest rates spark big drop in Metro Vancouver home sales' Rising interest rates spark big drop in Metro Vancouver home sales
WATCH: Rising interest rates spark big drop in Metro Vancouver home sales – Jul 5, 2022

The Real Estate Board of Greater Vancouver says last month’s home sales dropped by about 35 per cent since last June and 16 per cent from May 2022 as houses remained on the market longer and interest rates rose.

The B.C. board says sales in the region totalled 2,444 last month, down from 3,762 in June 2021, and 2,918 homes in May 2022.

Last month’s sales were 23.3 per cent below the 10-year June sales average.

Read more: Home sales in Metro Vancouver calmer in May as interest rates cool hot market

The board’s chair Daniel John says the drop in sales came because buyers have more properties to choose from, but rising interest rates and 39-year high inflation are causing them to be cautious and thus, listings are staying available for longer.

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The market saw 5,256 new listings last month, a roughly 10 per cent drop from 5,849 in June 2021 and a 17.6 per cent decrease from 6,377 in May 2022.

Meanwhile, the home price index composite benchmark price sat at more than $1.2 million last month, a 12.4 per cent increase over June 2021, a two per cent decrease compared to May 2022, and a 2.2 per cent decrease over the past three months.

“We’re seeing downward pressure on home prices as we enter summer in Metro Vancouver due to declining homebuyer activity, not increased supply,” John said, in a statement. “To meet Metro Vancouver’s long-term housing demands, we still need to significantly increase housing supply.”

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