Home sales across the Metro Vancouver real estate market slowed in September 2024, registering a 3.8% year-over-year decline as the region’s housing market continues to feel the impact of high borrowing costs.
According to data from Greater Vancouver Realtors (GVR), 1,852 residential sales were recorded last month, down from 1,926 sales in September 2023, and 26% below the 10-year seasonal average of 2,502.
“[Metro Vancouver] real estate watchers have been monitoring the data for signs of renewed strength in demand in response to recent mortgage rate reductions, but the September figures don’t offer the signal that many are watching for,” said Andrew Lis, GVR’s director of economics and data analytics. “Sales continue trending roughly 25 per cent below the ten-year seasonal average in the region, which, believe it or not, is a trend that has been in place for a few years now. With the September data, sales are now tracking slightly below our forecast; however, we remain optimistic sales will still end 2024 higher than 2023.”
Rising Inventory Levels
In contrast to the sales decline, the number of new listings surged. September saw 6,144 newly listed properties, marking a 12.8% increase compared to the 5,446 listings in September 2023 and 16.7% above the 10-year average. The total number of active listings also grew by 31.2%, with 14,932 properties currently on the market.
The overall sales-to-active listings ratio for September 2024 stood at 12.8%, with detached homes at 9.1%, attached homes at 16.9%, and apartments at 14.6%. A sustained ratio below 12% is typically linked with downward pressure on home prices, while ratios above 20% are associated with upward price trends.
Metro Vancouver Real Estate Price Movements
The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,179,700, reflecting a 1.8% decrease from September 2023 and a 1.4% drop compared to August 2024. Detached homes saw a slight price increase of 0.5% year over year, while the benchmark price of apartments and attached homes experienced modest declines.
With higher inventory levels and ongoing buyer hesitancy, the Metro Vancouver market is approaching a buyer’s market. However, with two more Bank of Canada rate decisions anticipated this year, and potential further reductions in borrowing costs, the market could see renewed buyer activity later in the fall.
If you have questions about the real estate market or need assistance with property transactions, contact the legal experts at Clark Woods LLP at 604-227-9153 today.