Latest numbers from The Globe and Mail’s House Price Data Centre revealed a trend indicating an eventual slowdown in the pace of home price growth in Vancouver, stemming from sluggish sales figures after the BC government’s implementation of a 15% tax on foreign buyers.

As of the end of 2016, the average home price in Vancouver declined by 0.8% (down to $778,590) compared to November. Marc Pinsonneault of National Bank said that this was the city’s third consecutive monthly drop.

Much of the decline was observed in single-family properties and other detached home types. Condos held steady, according to The Globe and Mail.

The numbers mirrored recent predictions made by Royal LePage, which warned Vancouverites to brace themselves for a possible home price correction this year.

“Eroding affordability in BC’s Lower Mainland has reached unsustainable ground. This, coupled with recently introduced public policy measures and lower sales volumes, has put visible downward pressure on home prices,” Royal LePage president and CEO Phil Soper stated.

“While the cost of a home in Greater Vancouver will remain the highest in the country, a modest price reset will provide much needed relief in the Lower Mainland and help reignite overall buyer activity in the region.”

Vancouver Home Sales Downturn Expected to Impact Prices by Ephraim Vecina | Canadian Real Estate Wealth