August 2024, the Greater Vancouver real estate market experienced a notable slump, with home sales dropping by 17.1% compared to the same month in 2023. Only 1,904 properties were sold, a significant decline from the 2,296 sales recorded in August 2023. This downturn pushed sales 26-27% below the region’s 10-year seasonal average.
Experts attribute this slump to the ongoing impact of high borrowing costs, despite recent interest rate cuts by the Bank of Canada. Buyers are still hesitant to enter the market, awaiting more stability before committing to purchases. The total number of properties listed for sale rose to 13,812, a 37% increase year-over-year, as new listings increased modestly by 4.2%.
While the market remains in a holding pattern, analysts expect the situation may improve with the fall season, which traditionally sees increased activity. The benchmark price for all residential properties in the region was $1,195,900, down 0.9% from last year.
The Greater Vancouver real estate market experienced a notable slump in August 2024, with several key points of decline:
- Home Sales Drop: There was a 17.1% year-over-year drop in home sales, with 1,904 properties sold, compared to 2,296 in August 2023. Sales were also 27.6% below the 10-year seasonal average.
- Higher Inventory: The number of active listings rose significantly, with a 37% year-over-year increase, bringing the total to 13,812 homes for sale. This was also 20.8% above the 10-year seasonal average.
- Price Fluctuations: The composite benchmark price for residential properties was down by 0.9% year-over-year, standing at $1,195,900. There was also a 0.1% decrease from the previous month.
- Sales by Property Type:
- Detached Homes: Sales dropped 13.9% from the previous year, with the benchmark price at $2,048,400.
- Apartments: Sales fell by 20.3%, with a benchmark price of $768,200.
- Townhouses: Sales decreased by 12.3%, with a benchmark price of $1,119,300
- Buyers’ Hesitation: The continued hesitancy of buyers, driven by high borrowing costs despite recent rate cuts, has kept sales subdued. However, the fall season may bring more activity as buyers look for better market conditions.
Key Takeaways
- 17% Decline in Sales: Home sales in Greater Vancouver dropped by 17.1% compared to August 2023, with only 1,904 homes sold. Sales were also 27.6% below the 10-year seasonal average, indicating a significant slowdown.
- Higher Borrowing Costs: Buyers are hesitating due to the ongoing impact of high borrowing costs. Despite two recent rate cuts by the Bank of Canada, many remain cautious, leading to lower demand.
- Price Decline: The composite benchmark price for all residential properties was $1.195 million, reflecting a slight 0.9% decrease from the previous year and a 0.1% dip compared to July.
- Increase in Listings: In contrast to the drop in sales, new listings rose by 4.2% year-over-year, with 4,109 properties added to the market. This brought the total number of active listings to 13,812, up 37% from August 2023.
- Hope for September: Despite the August slump, realtors are optimistic about September, as it usually sees an uptick in activity, and another recent rate cut might encourage more buyers.
This suggests a market in flux, with many waiting to see if lower interest rates will drive more activity in the fall months.
