The Metro Vancouver real estate market continued to lag in August 2024, falling well below the ten-year seasonal average as high borrowing costs kept potential buyers at bay.
According to the Greater Vancouver REALTORS (GVR), residential sales totaled 1,904 for the month, marking a 17.1% decline from the 2,296 sales recorded in August 2023 and a 26% drop from the ten-year seasonal average of 2,572 sales.
“August is typically a slower month for home sales, but this year, we are seeing a more pronounced hesitancy among buyers,” said Andrew Lis, GVR’s director of economics and data analytics. “Sales remain around 20% below their ten-year average, suggesting that buyers are feeling the impact of higher borrowing costs, despite two recent cuts to the policy rate.”
Increase in New Listings and Overall Inventory
The number of newly listed properties on the Multiple Listing Service rose slightly to 4,109, a 4.2% increase compared to August 2023 but still 1.7% below the ten-year seasonal average. Meanwhile, the total number of properties currently listed for sale on the MLS hit 13,812, representing a 37% increase from the same time last year and 20.8% above the ten-year seasonal average.
The sales-to-active listings ratio—a key indicator of market conditions—was 14.3% in August 2024, with detached homes at 9.6%, attached homes at 18%, and apartments at 17.2%. Historical data indicates that home prices tend to decrease when this ratio remains below 12% for an extended period, while a ratio above 20% can exert upward pressure on prices.
“The combination of buyer hesitation and a consistent influx of new listings has allowed inventory to accumulate, shifting the market toward balanced conditions,” Lis added.
Looking Ahead: Will Borrowing Cost Reductions Boost Activity?
Looking ahead, the recent quarter-percentage point reduction in the Bank of Canada’s policy rate, combined with the typical seasonal uptick in sales activity in September, could encourage more buyers to re-enter the market in the coming months.
The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver currently stands at $1,195,900, reflecting a 0.9% decrease from August 2023 and a 0.13% decrease compared to July 2024.
Detached Home Sales and Prices
Detached home sales fell to 509 units, down 13.9% from August 2023, with a benchmark price of $2,048,400—a 1.8% increase year-over-year but a 0.1% decline from the previous month.
Sales of apartment homes decreased by 20.3% to 1,012 units, with the benchmark price remaining stable at $768,200. Attached home sales totaled 370 units, down 12.3%, with a benchmark price of $1,119,300, representing a 0.8% annual increase but a 0.5% monthly decrease.
As Metro Vancouver heads into the fall market, all eyes are on whether improved borrowing conditions will draw buyers back into the fold.
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