As the fall market kicks off in Metro Vancouver, home sales registered on the MLS® indicate that buyers are exercising caution. Despite recent reductions in mortgage rates, demand remains subdued, and the market hasn’t yet shown a significant uptick in activity. According to the latest data from Greater Vancouver REALTORS® (GVR), September 2024 sales fell 3.8% compared to the same month in 2023.
At Vancouver Property Management, VPM Group RE/MAX, we closely monitor these trends to provide our clients with insights that help them make informed decisions. Understanding the market’s pulse is crucial for property owners, whether you’re looking to rent, sell, or invest.
Market Performance Overview
In September 2024, residential sales in Metro Vancouver totaled 1,852, down from 1,926 in September 2023, which marks a decrease of 3.8%. Even more striking is that sales were 26% below the 10-year seasonal average of 2,502.
While recent mortgage rate cuts were expected to drive a resurgence in demand, the current figures suggest that buyers are still hesitant. As Andrew Lis, GVR’s Director of Economics and Data Analytics, pointed out, “Sales continue trending roughly 25 per cent below the ten-year seasonal average… but we remain optimistic sales will still end 2024 higher than 2023.”
New Listings and Inventory on the Rise
One positive takeaway is that new listings are up significantly. In September 2024, 6,144 detached, attached, and apartment properties were newly listed for sale on the MLS®—a 12.8% increase compared to the same period in 2023. The total number of active listings is also up by 31.2%, offering buyers more options and boosting competition in the market.
With inventory levels rising and sales not keeping pace, we may see continued downward pressure on home prices in the coming months. Currently, the sales-to-active listings ratio for September sits at 12.8%, a clear indicator of market conditions. When this ratio dips below 12%, as it has for detached homes (9.1%), it usually signals downward price pressure. However, attached homes (16.9%) and apartments (14.6%) are still holding steady.
What This Means for Buyers and Investors
For those looking to purchase or invest in property, the market is inching toward more favorable conditions. As inventory rises and prices soften slightly, buyers may find increased bargaining power. According to GVR, the benchmark price for all residential properties in Metro Vancouver has decreased 1.8% year-over-year to $1,179,700. Detached homes are currently priced at a benchmark of $2,022,200, while apartment homes sit at $762,000, and townhomes are at $1,099,200.
Although sales of detached and apartment homes have declined by 9.8% and 4.9% year-over-year, respectively, attached homes have seen a modest increase in sales of 7.4%. This suggests that townhomes may continue to be a sought-after option, especially for families seeking more space but not yet ready for the price tag of a detached home.
Future Market Outlook
With two more policy rate decisions expected this year and possible further reductions in borrowing costs, we may see a shift in market activity as we head into late fall. As Andrew Lis notes, “It’s not inconceivable that demand may still pick up later this fall should buyers step off the sidelines.”
If you’re considering entering the market, whether to buy or rent out a property, now might be the right time to explore your options. The current conditions provide ample selection for buyers, while property owners may need to adjust their pricing strategies to remain competitive.
Contact Vancouver Property Management, VPM Group RE/MAX
At Vancouver Property Management, VPM Group RE/MAX, we specialize in helping property owners navigate Metro Vancouver’s dynamic real estate market. Whether you’re looking to lease out a property, sell, or invest, our team is here to provide expert guidance tailored to your needs.
With our extensive experience in the Vancouver real estate market, we can help you make the most of these evolving conditions. Contact us today for more information or to discuss your property management needs.
