In Vancouver, the seller's market recedes

June is traditionally one of the busiest months in real estate, yet one of the country's priciest cities saw a significant decline in activity. Vancouver's June sales fell by 17% compared to the previous month, and 27.6% below June 2011. Economists are seeing this drop as a sign of market correction, and predict that home prices will start to decrease as well. This article from the Globe and Mail explores industry statistics and possible causes.

The average price for a detached home in Vancouver has reached a high of $961,600, an increase of 35% from the average three years ago, and 50% higher than the Toronto average. A price decrease would move Vancouver closer to a buyer's market, a welcome change for those seeking their first mortgage.

Financial analysts are unsure of the exact cause of the slowdown, but it is believed that new lending regulations are partly responsible. Industry professionals in the city have seen buyers back out of potential sales, citing new income requirements as the reason. Over the month of June, only 2,362 properties were sold, the lowest Vancouver has seen since the year 2000. Following the Vancouver slowdown, some analysts believe the Toronto market will follow.

To read the full article from the Globe and Mail, click here.