Home prices in Vancouver declined by 1.9% in November from the previous month, marking the largest decrease in a decade.
According to a report by Bloomberg, these results imply that the high figures logged early this year may have been momentary given that Canadians were adjusting to stricter lending rules.
A recent study from Canadian Real Estate Association (CREA) showed that values across the nation have slid for six straight months, after hitting a new high in May.
“The decline in home ownership affordability caused by this year’s new mortgage stress-test remains very much in evidence. While national home sales were anticipated to recover in the wake of a large drop in activity earlier this year due to the introduction of the stress-test, the rebound appears to have run its course,” said Gregory Klump, CREA’s chief economist.
CREA further found that prices decreased by 1.4% to an average $1.04 million year-over-year. This was the first year-over-year decline in five years, and it caused the nationwide price to sink by 2%.
Home resales in the country, meanwhile, declined 2.3% in November from the previous month, also marking the largest decrease since April.
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