Metro Vancouver Home Sales Below 10-Year Average as Summer Slows the Market - Vancouver Housing Data August 2024

As summer holidays wrap up, the real estate market in Metro Vancouver continues to lag behind historical trends. Home sales registered on the MLS® in August 2024 remained below the ten-year seasonal average, reflecting buyers’ ongoing caution in the face of higher borrowing costs.

According to Greater Vancouver REALTORS® (GVR), a total of 1,904 residential sales were recorded in the region in August 2024. This figure marks a 17.1% decrease from the 2,296 sales in August 2023 and is 26% below the ten-year seasonal average of 2,572.

“August is typically a slower month for home sales, so this year has been no exception,” said Andrew Lis, GVR’s director of economics and data analytics. “However, sales remain about 20% below their 10-year seasonal average, indicating that buyers are still feeling the impact of higher borrowing costs, even though the Bank of Canada reduced the policy rate twice this summer.”

Listings Rise, but Market Remains in Balance

In August 2024, 4,109 detached, attached, and apartment properties were newly listed for sale on the MLS® in Metro Vancouver, a modest 4.2% increase compared to August 2023. Although new listings were up, they were still 1.7% below the ten-year seasonal average of 4,179.

The total number of homes currently listed for sale stands at 13,812, a 37% increase from August 2023, when just 10,082 homes were available. This total inventory is 20.8% above the ten-year seasonal average of 11,432.

This growing inventory has led to balanced market conditions, as the sales-to-active listings ratio for August 2024 is 14.3% across all property types. This breaks down to 9.6% for detached homes, 18% for attached homes, and 17.2% for apartments.

What Does the Sales-to-Active Listings Ratio Mean?

The sales-to-active listings ratio is an important indicator of market conditions. Historically, when the ratio dips below 12% for a sustained period, downward pressure on home prices occurs. Conversely, when the ratio exceeds 20% for several months, prices tend to rise. With the current ratio hovering at 14.3%, the market is in balanced territory, with neither significant upward nor downward pressure on prices.

Lis explains, “The hesitancy among buyers, coupled with a steady flow of new listings from sellers, has allowed inventory to build up, stabilizing the market.”

Bank of Canada Rate Cuts: Will Buyers Return This Fall?

The recent reductions in the Bank of Canada’s policy rate may set the stage for more market activity as we move into the fall. Lis remains cautiously optimistic: “With September typically seeing an increase in sales from a seasonal perspective, the fall market may bring more buyers off the sidelines. We’ll be watching closely to see if this leads to increased sales activity.”

Home Prices Hold Steady Amid Slower Sales

Despite the slowdown in sales, home prices in Metro Vancouver have remained relatively stable. The MLS® Home Price Index composite benchmark price for all residential properties in the region is $1,195,900, representing a slight 0.9% decrease compared to August 2023 and a 0.1% decrease from July 2024.

• Detached homes: Sales of detached homes reached 509 in August 2024, down 13.9% from August 2023. The benchmark price for a detached home is $2,048,400, reflecting a 1.8% year-over-year increase and a 0.1% decrease from July 2024.

• Apartment homes: Sales of apartment homes dropped by 20.3%, with 1,012 units sold in August 2024 compared to 1,270 in August 2023. The benchmark price for an apartment remains steady at $768,200, virtually unchanged from both August 2023 and July 2024.

• Attached homes (townhouses): A total of 370 attached homes were sold in August 2024, a 12.3% decline from 422 sales in August 2023. The benchmark price for a townhouse is $1,119,300, up 0.8% from last year but down 0.5% from July 2024.

What’s Next for Metro Vancouver’s Real Estate Market?

As we transition into the fall season, it will be crucial to see how buyers react to the recent rate cuts and whether they re-enter the market. The current balanced conditions suggest that while prices aren’t likely to skyrocket, the stability may create an ideal opportunity for those ready to buy.

For prospective homebuyers and sellers, keeping an eye on September’s data will be key to understanding the direction of the market as we head toward the end of 2024. Whether you’re waiting for more favorable conditions or ready to take the plunge, the upcoming months could bring new opportunities in Metro Vancouver’s real estate landscape.

Conclusion:

Although August 2024 saw slower sales in Metro Vancouver’s real estate market, the build-up of inventory and stable prices have created balanced market conditions. As we head into the fall, the recent policy rate reductions and typical seasonal uptick in sales activity could bring renewed momentum to the market. Whether you’re buying or selling, staying informed will help you make the best decisions in the months ahead.

Vancouver Housing Data August 2024