MNI BRIEF: Vancouver May Home Sales Drop 20% From Year Ago

Vancouver home sales dropped 20% in May from a year ago while the number of properties listed for sale climbed almost 50%, reflecting the transition between the Bank of Canada's 10 rate hikes through last year and reductions that could start at Wednesday's meeting.

The 2,733 sales were also down 20% from the ten-year average for May according to the real estate board for the city, which at times in recent years was seen as one of the world's most overheated markets. Prices rose 2.3% from a year ago, well below a pace of around 8% over the last decade. The realtor group's economist Andrew Lis attributed the weakness to "everything from higher borrowing costs, to worries about the economy, to policy interventions imposed by various levels of government." (See: MNI INTERVIEW: Canada Housing Agency Sees Resale Price Boom)