October was a standout month for the Metro Vancouver real estate market. After months of quieter activity, buyers came back in full force, driving a significant surge in sales. Let’s dive into the numbers and what they mean as we head into November.
October’s Market Surge
After a stretch of sales tracking below the 10-year seasonal average, we saw a 31.9% jump in home sales year-over-year. The 2,632 transactions in October 2024 marked a big comeback, although sales were still 5.5% below the long-term seasonal average.
So, what’s driving this renewed demand? Lower mortgage rates appear to be the key. After sitting on the sidelines for months, buyers seem to be responding to four consecutive Bank of Canada rate cuts, and more reductions could be on the way.
Here’s a closer look at the October activity:
- Detached Homes: 724 sales (+25.5% YoY)
- Benchmark Price: $2,002,900 (+0.3% YoY, -1% MoM)
- Apartments: 1,393 sales (+33.4% YoY)
- Benchmark Price: $757,200 (-1.6% YoY, -0.6% MoM)
- Townhomes: 501 sales (+40.7% YoY)
- Benchmark Price: $1,108,800 (+0.4% YoY, +0.9% MoM)
This surge in activity is being met with more inventory, which is helping balance the market. New listings were up 16.9% YoY, with 5,452 properties hitting the MLS® in October, bringing the total number of active listings to 14,477 (+24.8% YoY).
Sales-to-Active Listings Ratio: What It Means
The sales-to-active listings ratio tells us a lot about market conditions:
- Detached Homes: 13.4% (balanced)
- Attached Homes: 22.5% (seller’s market)
- Apartments: 22.2% (seller’s market)
A ratio above 20% for a sustained period puts upward pressure on prices, so with attached homes and apartments in seller’s market territory, we may be nearing the end of the price moderation we’ve seen in recent months.
Prices Stabilizing
While sales are up, prices have been relatively steady:
- Overall benchmark price for Metro Vancouver: $1,172,200
- -1.9% YoY
- -0.6% MoM
Price drops from earlier in the year may have helped bring buyers back, but with demand picking up, we’re watching closely to see if prices start trending upwards again, especially in the more active segments like apartments and townhomes.
What This Means for You
- For Sellers: If you’ve been waiting to list, this uptick in demand could mean the right buyers are out there now, especially for townhomes and apartments.
- For Buyers: With inventory levels up and interest rates lower, this is a unique opportunity to make your move before prices potentially shift upward in the coming months.
Let’s Talk Strategy
Whether you’re buying or selling, the market is moving, and preparation is everything. If you’re curious about how these trends impact your plans, let’s chat. Every property type, price point and neighbourhood can perform differently from one market to the next so it’s imperative you seek market information as it pertains to your local market. The Next Door team is here to help you with this, give us call!