Metro Vancouver’s housing market saw a resurgence in October, with home sales rising by 31.9% year-over-year, a boost largely attributed to recent interest rate cuts from the Bank of Canada.
A total of 2,632 properties were sold, up from 1,996 in October 2023, though this is still 5.5% below the 10-year seasonal average of 2,784, according to data from Greater Vancouver REALTORS (GVR).
Andrew Lis, GVR’s director of economics and data analytics, highlighted renewed buyer interest in October following a stretch of slower activity.
“Typically, reductions to mortgage rates boost demand, and the strong October sales numbers suggest buyers may finally be responding to lower borrowing costs after waiting on the sidelines for months,” Lis said. “…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.”
New listings and inventory up
October saw an increase in newly listed homes, with 5,452 detached, attached, and apartment properties hitting the market—a 16.9% rise from last year and 20% above the 10-year seasonal average. Total inventory climbed to 14,477 units, marking a 24.8% increase year-over-year and 26.2% above the long-term average, offering more options for buyers across Metro Vancouver.
The sales-to-active listings ratio reached 18.8% overall, nearing a seller’s market threshold. Historically, ratios above 20% create upward pressure on prices, suggesting possible price increases for attached and apartment homes if the trend continues.
Lis noted that while conditions are balanced overall, attached and apartment segments are beginning to tilt towards seller’s market conditions “with the detached segment not far behind.”
Modest price movements
Price changes were relatively modest despite the sales boost. The MLS Home Price Index benchmark price for all residential properties in Metro Vancouver was $1,172,200 in October—a 1.9% decline from last year and down 0.6% from September.
By segment type, detached homes saw a benchmark price of $2,002,900 in October, a slight 0.3% increase year-over-year but down 1% from September. Apartments had a benchmark price of $757,200, down 1.6% year-over-year and 0.6% month-over-month. For attached homes, the benchmark price reached $1,108,800, up 0.4% annually and a modest 0.9% from the previous month.
Outlook for Metro Vancouver’s market
October’s strong numbers may suggest renewed momentum in Metro Vancouver’s housing market, but Lis cautioned against reading too much into a single month worth of stats.
“While the strength in October’s numbers is encouraging, one data point does not make a trend,” Lis said.
However, with more rate cuts on the horizon and an expanding inventory, Vancouver’s housing market may see continued demand growth, particularly if borrowing costs keep easing.
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Last modified: November 4, 2024