The Greater Vancouver Real Estate Market is witnessing a notable shift, with the number of homes for sale steadily increasing in the Lower Mainland. However, buyers are showing caution and remaining on the sidelines, as revealed by the latest statistics from the Greater Vancouver Real Estate Board.
Rise in Property Listings
The data reflects a surge in property listings, with 4,644 properties newly listed in October 2023. This represents a substantial 15.4% increase compared to the same period in 2022. Furthermore, it surpasses the 10-year seasonal average for the month by 4.8%.
In contrast to the growing number of listings, residential home sales totalled 1,996 in October 2023, marking a 3.7% increase from the same month last year. However, it’s crucial to note that sales remain 29.5% below the 10-year seasonal average.
REBGV
“With properties entering the market at a rate roughly 5% above the ten-year seasonal average, there seems to be a continuation of the renewed interest on the part of sellers to participate in the market we’ve been watching this fall,” said Andrew Lis, the director of economics and data analytics at REBGV. “Counterbalancing this increase in supply, however, is the fact that sales remain almost 30% below their ten-year seasonal average, which tells us demand is not as strong as we might expect this time of year.”
Active Listings on the Rise
As of the latest data, Metro Vancouver currently boasts 11,599 active listings, indicating a substantial 12.6% increase from 2022.
In October 2023, the sales-to-active listings ratio across all property types, including detached, attached, and apartments, stood at 17.9%. This key metric provides valuable insights into market dynamics. Notably, the ratio for detached homes registered at 12.9%, while attached homes and apartments displayed ratios of 20.9% and 21.5%, respectively.
Historical Data Insights
A historical analysis underscores the significance of this ratio. When it falls below 12% for an extended period, it tends to exert downward pressure on home prices. Conversely, when it consistently exceeds 20% over several months, it typically propels home prices upward. This dynamic illustrates the delicate balance between supply and demand in the housing market.
“While the highest borrowing costs we’ve seen in over a decade continue to constrain affordability, a silver lining for buyers is that price increases have abated with these more balanced market conditions,” Lis said. “This means purchasing power is holding steady for the moment.”
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