As summer winds down the statistics tell a story of cooling price gains and slower sales, but very typical for this time of year. Yes we can point to the interest rate hikes in part, but there was also an overwhelming penchant for summer holidays and a little real estate fatigue. The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totaled 2,296 in August 2023, a 21.4 per cent increase from the 1,892 sales recorded in August 2022. This was 13.8 per cent below the 10-year seasonal average (2,663).
“It’s been an interesting spring and summer market, to say the least. Borrowing costs are fluctuating around the highest levels we’ve seen in over ten years, yet Metro Vancouver’s housing market bucked many pundits’ predictions of a major slowdown, instead posting relatively strong sales numbers and year-to-date price gains north of eight per cent, regardless of home type.” said Andrew Lis, REBGV director of economics and data analytics
There were 3,943 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in August 2023. This represents an 18.1 per cent increase compared to the 3,340 homes listed in August 2022. This was 5.3 per cent below the 10-year seasonal average (4,164).
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 10,082, a 0.2 per cent decrease compared to August 2022 (10,099). This was 13.4 per cent below the 10-year seasonal average (11,647).
Across all detached, attached and apartment property types, the sales-to-active listings ratio for August 2023 is 23.9 per cent. By property type, the ratio is 14.2 per cent for detached homes, 30.3 per cent for townhomes, and 31.9 per cent for apartments.
Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
While we generally experience a summer slowdown, September is traditionally a month of back to work/school and also new FOR SALE signs! With the supply of housing still historically low, we are curious to see what this month brings. An interest rate hold without a spike in new inventory could lead to another challenging Fall market.
We remain your Generations Real Estate Partners and are always happy to hear from you with any of your real estate questions. Remember to slow down for the kids walking to school and give yourself lots of time with the increased traffic.
Michelle Hawthorne, Scott Johnson, Shane Goutsis, Ray Harris & Sheila Francis