Metro Vancouver Market Update

Despite interest rate reductions many buyers sat out of the September market.

Wondering what changed in Metro Vancouver's real estate market last month?

1. MLS Home Price Index benchmark price for all listings in Metro Vancouver is...

   • 1.8% decrease year-over-year (compared to September 2023).
   • 1.4% decrease month-over-month (compared to August 2024).

2. Home sales in September were...

   • 26% below the 10-year seasonal average.
   • A 3.8% decrease year-over-year (compared to September 2023)

    

    •••

    

   Main Highlights:

   1. September marks the fourth consecutive month that all three pillars of the market have experienced very slight month-over-month pricing decreases.
   2. Pricing September 2024 vs August 2024 saw between 0.8% &1.8% decrease. 1.8% in the townhouse market is the largest monthly decrease since June.
   3. For the first time since decreases began all three areas of the market have declined year-over-year. Compared to September 2023 prices have decreased between 0.5% & 0.8%.
    
   The summer’s trend of sellers outnumbering buyers continues in to the beginning of fall. & now we wait to see if another interest rate drop will jump start buyers waiting on the sidelines.
    
   • Compared to September 2023 monthly sales varied:

   1. Detached: 9.8% down
   2. Townhouse: 7.4% increase
   3. Apartment:  4.9% decrease

   • The total number of listings in Greater Vancouver has increased 31.2% year-over-year, & 24.2% compared to the 10-year average.  

    

   Metro Vancouver Market Highlights September 2024:

    

    

   •••

   Synopsis:

   1. As it was with much of the summer the main story continues to be; a high number of new listings mixed with hesitant buyers.
   2. The beginning of fall usually signifies increased buyer activity…however, this year summer doldrums have extended in to early fall.
   3. Micro month-over-month decreases have now grown into minor monthly decreases as 2024 prices dip below 2023 pricing.
   4. While the market is still declared balanced from a pure statistical standpoint, in an ever-growing majority of purchases buyers are gaining the upper hand. The sheer number of listings is resulting in homes becoming increasingly ‘harder’ to sell unless their price point is deemed to be sharp.

    

   •••

    

   More specifically this is what the REBGV had this to say:

   “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,” Andrew Lis, GVR’s director of economics and data analytics said. “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, but we remain optimistic sales will still end 2024 higher than 2023. Buyers’ hesitancy to enter the market, paired with new listing activity on the part of sellers that is in line with historical averages, has allowed inventory to accumulate for a number of months. Lis said” With some buyers choosing to stay on the sidelines, inventory levels have sustained the healthy gains achieved over the course of this year, providing much more selection to anyone searching for a home.”

   “With all this choice available, prices have trended sideways for the past few months. The September figures, however, are now showing modest declines across all segments on a month over month basis. This downward pressure on prices is a result of sales not keeping pace with the number of newly listed properties coming to market, which has now put the overall market on the cusp of a buyers’ market. With two more policy rate decisions to go this year, and all signs pointing to further reductions, it’s not inconceivable that demand may still pick up later this fall should buyers step off the sidelines.”

   The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 14,932, a 31.2 per cent increase compared to September 2023 (11,382). This is 24.2 per cent above the 10-year seasonal average (12,027).

   The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,179,700. This represents a 1.8 per cent decrease over September 2023 and a 1.4 per cent decrease compared to August 2024.

   
   

   Caution rules the market

   Greater Vancouver Home Sales 2024 VS 2023

    

   ••• 

    

   CLICK HERE FOR THE FULL GVR September 2024 STATISTICS PACKAGE

    

    

   Looking to make a change for the upcoming summer months?

   Reach out today and let us help you navigate through the ever changing market.
   

    

   Rod & Rhea: 604.240.1927
   Ryan: 604.561.2127
    hayes@rodrhearyan.com