As summer wraps up, we’re seeing a shift in the real estate market here in Metro Vancouver. Things have slowed down a bit, with home sales in August falling below the usual 10-year averages. It’s been a quieter summer, and a lot of that has to do with summer holidays and the impact of higher borrowing costs.
What Happened in August?
In August 2024, we saw 1,904 homes sold in Metro Vancouver—a 17.1% drop from the same time last year. We’re also 26% below the 10-year seasonal average for sales. Now, it’s important to remember that August is always a bit of a slow month compared to June or July, but this year, it’s been quieter than usual.
Andrew Lis, the data expert at Greater Vancouver REALTORS® (GVR), explains that this is largely due to higher borrowing costs. Even though the Bank of Canada has cut rates twice recently, the impact of those rate hikes is still being felt. Buyers are feeling the pinch.
Inventory is Building Up
On the flip side, the number of homes for sale has gone up. There were 4,109 new listings in August, which is a 4.2% increase compared to last year. Overall, we now have 13,812 homes on the market—37% more than last August. This is 20.8% above the 10-year average, which means buyers have a lot more options.
What Does This Mean for You?
Right now, we’re in what we call a “balanced market,” with the sales-to-active listings ratio sitting at 14.3%. If you’re curious about what this means:
- For detached homes, the ratio is 9.6%—which is on the quieter side.
- Attached homes (think townhomes) have a ratio of 18%—a bit more activity here.
- Apartments are at 17.2%—also showing some movement.
Here’s why that matters: when the ratio dips below 12% for a while, prices tend to come down. If it shoots above 20%, prices start to climb. Right now, we’re right in that sweet spot, which usually signals stability.
What’s Next for the Market?
Fall is typically a busier season for real estate. With the Bank of Canada lowering rates again and the summer holidays behind us, we’re expecting more buyers to step back into the market in the coming months. Sellers, if you’ve been waiting for things to pick up, it’s looking like fall could bring some action.
Current Home Prices
Here’s where we stand with pricing right now:
- The benchmark price for all homes in Metro Vancouver is $1,195,900, which is down 0.9% from August last year.
- For detached homes, the benchmark price is $2,048,400—up 1.8% from 2023.
- Apartments are holding at $768,200, down just 0.1% from last year.
- Townhomes are sitting at $1,119,300, up 0.8%.
What Should You Do?
If you’re thinking about buying, this could be a great window of opportunity before the market heats up again. More options, less competition—definitely something to consider.
For sellers, even in a balanced market, strategy is key. Working with the right team (ahem, our team) can make all the difference in navigating these market shifts.
If you’re ready to make a move, or even if you just want to chat about your options, we’re here to help. Let’s talk about what the fall market could mean for you.