Zillow and Redfin not worried about Vancouver slowdown
Vancouver homes sales dropped to a three-decade low in March just as Redfin and Zillow began to invest in the bustling British Columbia city and Canada at large.
The number of home sales in Vancouver fell 31 percent from the same time last year, according to numbers from the Real Estate Board of Greater Vancouver. The March total, or the 1,727 homes sold that month, has not been this low since 1986.
The city, which sits next to the Pacific Ocean and has long been known for having some of the most expensive real estate in Canada, is undergoing market oversaturation after a period of rapid home value growth.
But the drop in sales also has to do with a shift in regulations — the Canadian city recently introduced new rules that tighten one’s ability to receive a mortgage and require potential buyers to pass a stress test as a way of evaluating one’s ability make mortgage payments.
As a result, Vancouver and its metropolitan area saw a large spike in listings as homes sit on the market in wait of a buyer. There are currently only 12,774 Vancouver homes on the market, 52.4 percent more than last year and 10.2 percent more than last year.
Over the last year, several major real estate companies have made strong efforts to expand into Canada. Zillow, which launched its first Canadian listings in October, partners with several independent brokerages in Vancouver.
Meanwhile, Redfin launched in Toronto this February and announced plans to expand to Montreal and Vancouver by the end of April.