The Design District 41.The Canadian housing market has collapsed? Only three homes were sold in west Vancouver, where prices are the highest, down 94 per cent from 52 in the same period last year, while sales in Richmond, where Chinese buyers are concentrated, also tumbled 96 per cent.Please Visit: The Design District 41 to Get Your VVIP Registration Today!
As for the Vancouver area as a whole, the average price of homes sold fell 21.4% in 28 days, 25.1% in three months, and even 7.4% lower than the average house price in the same period last year.
Jerry Jiang, PhD in financial statistics from the University of Florida, gives a simple example to illustrate the problem with this method of calculation. Suppose there are 10, 000 houses for sale in Vancouver in June, 5, 000 are high-end houses, the average price is 1.5 million, the other 5, 000 are medium-and low-grade houses, the average price is 500000, the average price is (150-5000-50000) / 10000, and the final average price is 1 million.
Suppose there are only 6500 houses for sale in Vancouver in July, of which 1500 are high-end houses, with the average price unchanged, the number of medium-and low-grade housing unchanged, and the average price unchanged. Because there are fewer high-priced houses, the overall average price is (150,1500,505000) / 6500 = 730700, which is indeed 27% lower than the average price last month, but the average price of high-end housing is still 1 million, and the average price of medium-and low-grade housing is still 500000. In this case, the decline is not housing prices, but the proportion of high-end housing in the sample.
In other words, when the proportion of houses at different prices in the real estate market changes, the average price data fluctuates greatly. As a result, there may be no change in all grades of housing prices, or even rise, but due to the reduction in the number of high-priced houses sold, resulting in a decline in average prices. ” Jerry Jiang told Interface News.
Sales of houses in all regions of Vancouver in the first two weeks of August were year-on-year in 2015 and 2016. Chart source: Global News, data source: Zolo.ca.
As Zolo found, sales in West Vancouver fell to three units in the first half of August from 52 in the same period last year-the area where Vancouver’s high-end homes are concentrated. The average price of a house in the Greater Vancouver area is about C $1.1 million, while that in West Vancouver is as high as C $2.8 million. The average house price here was close to C $3.55 million in March, but the average price in August was only C $2.6 million, a drop of more than 26%. But we can not ignore that the transaction volume of 3 sets is really a very small sample.
At present, it is mainly due to a slowdown in sales of high-end homes and falling prices, and the main buyers of these houses are Chinese buyers. Housing sales around C $50 to C $700000 are not much affected, and one-bedroom housing can also be described as “looting”.
Home sales in the Greater Vancouver area fell 85% in the first two weeks of August compared with the same period last year, but the main changes were concentrated in high-end housing. The time it takes for high-end properties to go to market has nearly tripled compared with the same period last year, while other types of properties even took less time to sell before July than in the same period last year.