Buyers return as sales jump 31.9% year-over-year, fueled by rate cuts
October brought a significant shift to the Metro Vancouver real estate market as home sales surged following lower mortgage rates and months of below-average activity.
Residential sales in the region totaled 2,632, marking a 31.9% year-over-year increase from October 2023, according to data from Greater Vancouver REALTORS® (GVR). This increase signals a potential rebound in buyer demand, spurred by recent lower mortgage rates.
Key Highlights:
- Sales Surge: October sales were just 5.5% below the 10-year seasonal average, a marked improvement compared to previous months, which trailed by approximately 20%.
- Inventory Growth: New listings reached 5,452, a 16.9% increase year-over-year, while total active listings climbed to 14,477, up 24.8% from October 2023.
- Balanced Conditions: The overall sales-to-active listings ratio stands at 18.8%, with attached and apartment properties edging into a seller’s market.
Lower Mortgage Rates
After four consecutive rate cuts from the Bank of Canada, buyers appear to be re-entering the market.
“The strong October sales numbers suggest buyers may finally be responding to lower borrowing costs after waiting on the sidelines for months,” said Andrew Lis, GVR director of economics and data analytics. “To some market watchers, this rebound may come as a surprise, but with four consecutive rate cuts from the Bank of Canada – and more likely to come on the horizon – it was only a matter of time until signs of renewed strength in demand showed up.”
While detached home sales saw a 25.5% increase, attached and apartment properties experienced even greater growth, with sales up 40.7% and 33.4% year-over-year, respectively. The strength in these segments hints at a shift in demand toward more affordable housing options.
Price Movements
Despite the uptick in sales, price changes remained moderate:
- Detached Homes: Benchmark price of $2,002,900 (+0.3% YoY, -1.0% MoM)
- Apartment Homes: Benchmark price of $757,200 (-1.6% YoY, -0.6% MoM)
- Attached Homes: Benchmark price of $1,108,800 (+0.4% YoY, +0.9% MoM)
What Mortgages Rates Mean for Buyers and Sellers
With the attached and apartment segments trending toward a seller’s market and detached homes not far behind, the recent period of price moderation may soon come to an end. Buyers should act quickly if they’re looking to take advantage of current conditions, while sellers in specific segments may find this an opportune time to list.
Need Real Estate Legal Expertise?
Navigating Metro Vancouver’s evolving real estate market requires expert guidance. At Clark Woods LLP, our experienced team specializes in real estate and conveyance law, ensuring smooth transactions for buyers and sellers alike.
📞 Call us at 604-227-9153 or visit clarkwoods.ca to learn more.