In June housing market of Vancouver continued to show weakening signals, Bloomberg reports.

Concerns over home affordability restricts demand from buyers.

Sales dropped 14% compared to May. This is the first monthly decline since January, when tighter federal mortgage rules became effective.

Transactions number was 29% lower than 10-year average. Taking into account seasonality, sales dropped 5% to the lowest level since 2013.

This data supports cooling of the market, where prices grew up 30% early last year and made government to step in and implement stricter regulations of the sector. Although prices are still high, sales decline will create inventories that will finally cause price decrease.

Buyers today are less active due to growing interest rates, high prices and stricter mortgage requirements.

Benchmark price did not change a lot and was $830000, which is 9,5% higher than in June 2017. Number of property for sale is the highest in three years and 40% more than a year ago.