Average existing detached home prices dropped 4.2% in one month while home sales dipped below a 10-year monthly average for the first time in more than two years.

The Real Estate Board of Greater Vancouver said Tuesday the average detached home in the region sold for $1,532,242 in September, down from $1,470,265 a month ago. At the same time, the average price of a condominium climbed 3.8% in a month earlier, reaching $549,214.

“Supply and demand conditions differ today depending on property type,” Dan Morrison, the president of the board, in a statement. “We’re seeing more demand for condominiums and townhomes today than in the detached home market.”

The price variations come following a new tax announced on July 25 and implemented on Aug. 2 which imposes a 15% additional property tax on foreign residents. On Monday, the federal government announced stricter rules on people claiming a tax exemption on principle residence and tightened up financing rules.

Overall, the Vancouver board’s MLS Home Price Index composite benchmark price for all residential properties in the metro area was up 28.9% in September from a year ago. The composite was down 0.1% from August.

“Changing market conditions are easing upward pressure on home prices in our region,” Morrison said. “There’s uncertainty in the market at the moment and home buyers and sellers are having difficulty establishing price as a result.”

For September, there were 2,253 sales, a 32.6% decline from a year ago and a 9.5 decline from just August. Last month’s sales were 9.6% below the 10-year sales average for the month, the first time that had occurred in the region since May, 2014.

New listings reached 4,799 in September but that is still a 1% decline from a year ago. However, it does represent an 11.8% increase from August.

The total number of homes currently listed for sale on the MLS system was 9,354 in September, a 13.4% decline from a year ago but a 10% increase from August. The sales-to-active listings ratio for September 2016 reached 24.1%, the lowest the ratio has been since February, 2015.

“Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% mark, while home prices often experience upward pressure when it reaches the 20 to 22 per cent range in a particular community for a sustained period,” the board said in its release.

Sales of detached properties in September were off 47.6% from a year ago with 666 homes changing hands last month. The benchmark price for detached properties was $1,579,400, a 33.7% increase from a year ago but a 0.1% decline from August.

Apartment property sales were were down 20.3% in September from a year ago. The benchmark price of an apartment property rose 23.5% during the same period to $511,800 but declined 0.5% from a month ago.

Vancouver Homes Sales Plunge Nearly 33% in Second Month Since Foreign Buyers’ Tax by Garry Marr | Financial Post