Maroc - STOREYS.COM - A La Une - 05/Sep 15:17

Greater Vancouver Real Estate Market Sees Both Buyers And Sellers Hesitating

Prospective Vancouver homebuyers haven’t yet benefited from the third Bank of Canada interest rate cut that came in early September, and that is showing in the latest statistics from Greater Vancouver Realtors, released on Wednesday.Although the BoC had delivered not one, but two quarter-point interest rate cuts before August came around, home sales in the month failed to pick up in the Greater Vancouver region, with just 1,904 transactions recorded. In its analysis of August’s stats, Greater Vancouver Realtors noted that transactions recorded in August were down 17.1% from the 2,296 sales recorded the prior year, and 26% below the 10-year metric of 2,572.“From a seasonal perspective, August is typically a slower month for sales than June or July. In this respect, this August has been no different,” GVR Economist Andrew Lis said. “With that said, sales remain in a holding pattern, trending roughly 20% below their 10-year seasonal average, which suggests buyers are still feeling the pinch of higher borrowing costs, despite two recent quarter percentage point reductions to the policy rate this summer.”On the inventory side of things, GVR reports that there were 4,109 detached, attached, and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) across Metro Vancouver last month. Taken together, total new listings represented a 4.2% increase compared to the 3,943 properties listed in August 2023. In addition, total new listings from August came in 1.7% under the 10-year seasonal average of 4,179 sales.Looking at new listings — those came in at 13,812 in Metro Vancouver in August, a figure that marked a 37% rise year over year, and a 20.8% jump over the the 10-year seasonal average for the metric. “Across all detached, attached and apartment property types, the sales-to-active listings ratio for August 2024 is 14.3%. By property type, the ratio is 9.6% for detached homes, 18% for attached, and 17.2% for apartments,” GVR said. “Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.”On the price side, the MLS® Home Price Index composite benchmark price for all residential properties clocked in at $1,195,900 in August, a 0.9% dip year over year, and just a 0.1% decrease over the month prior. Meanwhile, detached home sales hit 509 last month, jumping 13.9% from the year prior. “The benchmark price for a detached home is $2,048,400. This represents a 1.8% increase from August 2023 and a 0.1% decrease compared to July 2024,” TRREB said.“Sales of apartment homes reached 1,012 in August 2024, a 20.3% decrease compared to the 1,270 sales in August 2023. The benchmark price of an apartment home is $768,200. This represents a 0.1% decrease from August 2023 and is unchanged compared to July 2024. Attached home sales in August 2024 totalled 370, a 12.3% decrease compared to the 422 sales in August 2023. The benchmark price of a townhouse is $1,119,300. This represents a 0.8% increase from August 2023 and a 0.5% decrease compared to July 2024.”