There is a dearth of new sellers in the Vancouver housing market and the local real estate association says that is impacting activity in Canada’s most expensive market for existing housing.

The Real Board of Greater Vancouver reported Thursday there were 2,425 home sales throughout the region, a 41.9% decrease from the 4,172 homes sold a year ago and 7.7 per cent below the 10-year average for the month. Sales activity was up 59.2% compared to January.

“February home sales were well below the record-breaking activity from one year ago and in line with our long-term historical average for the month,” said Dan Morrison, president of the board, in a release. “Limited supply and snowy weather were two factors hampering this activity.”

The board said there were 3,666 new listings in February for detached, attached and apartment properties in Metro Vancouver, down 36.9% from a year ago and off 11.4% from January, 2017. It was the lowest number of new listings registered in February since 2003.

The Vancouver market has seen an accelerated slowdown in sales activity since the province slapped a 15% additional property tax on foreign buyers, effective Aug. 2. Realtors report the market is still adjusting to the impact of that tax.

The board did say the total number of properties listed for sale on the Multiple Listing Service rose 4% to 7,594 from a year ago. Total listings are up 4.9% from January 2017.

The sales-to-active listings ratio for February, 2017 was 31.9%, a 10-point increase from January.

“Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% mark for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months,” the board said in its release.

The board’s MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver was $906,700 last month, a 2.8% decrease over the past six months, but a 1.2% increase compared to January 2017.

“While home sales are not happening at the pace we experienced last year, home seller supply is still struggling to keep up with today’s demand. This is why we’ve seen little downward pressure on home prices, particularly in the condominium and townhome markets,” Morrison said.

There were 745 detached properties sales in February, a 58.1% decrease from a year ago. The benchmark price for a detached properties was $1,474,200, a 6.5% decrease over the past six months. Prices in that category were flat compared to January, 2017.

Apartment properties sales in February dropped 28.8% from a year ago while the benchmark price in that category reached $526,300, a 2.3% increase over the past six months and a 2.7% increase compared to January 2017.

Vancouver Home Sales Plunge More Than 40%, As New Listings Drop to 14-Year Low by Garry Marr | Financial Post