October brought a welcome shift in the Greater Vancouver1 real estate market, marking a notable upswing after months of slower-than-average sales activity. Typically, sales were tracking about 20 per cent below the ten-year seasonal average, but October’s figures reveal a strong rebound, with home sales surging over 30 per cent compared to the same time last year.

Residential Home Sales

Greater Vancouver REALTORS® (GVR)2 reports that residential sales registered on the Multiple Listing Service® (MLS®) in the region totalled 2,632 in October 2024, a 31.9 per cent increase from the 1,996 sales recorded in October 2023. This was 5.5 per cent below the 10-year seasonal average (2,784).

“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. To some market watchers, this rebound may come as a surprise, but 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.” – Andrew Lis, REBGV director of economics and data analytics.

Inventory

There were 5,452 detached, attached and apartment properties newly listed for sale on the MLS® in Metro Vancouver in October 2024. This represents a 16.9 per cent increase compared to the 4,664 properties listed in October 2023. This was 20 per cent above the 10-year seasonal average (4,545).

Home Price Data Analysis

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 14,477, a 24.8 per cent increase compared to October 2023 (11,599). This total is also 26.2 per cent above the 10-year seasonal average (11,475).

Metro Vancouver Home Sales by Property Type

Across all detached, attached and apartment property types, the sales-to-active listings ratio for October 2024 is 18.8 per cent. By property type, the ratio is 13.4 per cent for detached homes, 22.5 per cent for attached, and 22.2 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.

Detached

Sales of detached homes in October 2024 reached 724, a 25.5 per cent increase from the 577 detached sales recorded in October 2023. The benchmark price for a detached home is $2,002,900. This represents a 0.3 per cent increase from October 2023 and a 1 per cent decrease compared to September 2024.

Apartments

Sales of apartment homes reached 1,393 in October 2024, a 33.4 per cent increase compared to the 1,393 sales in October 2023. The benchmark price of an apartment home is $757,200. This represents a 1.6 per cent decrease from October 2023 and a 0.6 per cent decrease compared to September 2024.

Attached Homes

Attached home sales in October 2024 totalled 501, a 40.7 per cent increase compared to the 356 sales in October 2023. The benchmark price of a townhouse is $1,108,800. This represents a 0.4 per cent increase from October 2023 and a 0.9 per cent increase compared to September 2024.

Article courtesy of Stilhavn Real Estate Services

*For more details about your neighbourhood, contact me directly: Bridget 604-805-6820 or bridget@bridgetross.ca

On October 23rd, the Bank of Canada (BoC) lowered its key policy interest rate by 50 basis points, or half a percent. For both homebuyers and sellers alike, understanding these rate cuts is crucial to making informed decisions. Here’s a breakdown of what the rate cuts mean and how they could influence buying or selling a home in BC.

What Are Interest Rates, and Why Do They Matter?

The BoC sets a benchmark interest rate that influences how much it costs to borrow money in Canada. When this rate is low, borrowing costs decrease, which means mortgages become more affordable. Conversely, when the rate is high, loans become more expensive, slowing down consumer borrowing and spending. These rate adjustments are the BoC’s way of helping stabilize the economy by either encouraging or discouraging spending.

What Lower Rates Mean for Homebuyers

1. More Affordable Mortgages
One of the most direct effects of rate cuts is that they make mortgages cheaper. Lower interest rates mean lower monthly payments, which can allow some buyers to afford a larger mortgage than they could at a higher rate. For first-time homebuyers, this can be a game-changer, as the cost of entry into the BC market—especially in urban areas like Metro Vancouver and Kelowna—has been a high barrier to homeownership.

2. Improved Buying Power
When rates are low, buyers often find they qualify for larger loans, which can broaden their options and make more expensive homes attainable. This increased buying power can enable buyers to consider homes they might otherwise have thought were out of their price range. However, it’s crucial for buyers to stay cautious and ensure they can handle payments even if rates rise in the future.

3. Increased Competition
With more affordable mortgages, more people are likely to enter the housing market. This can lead to increased competition, especially for desirable properties. Buyers should be prepared to act quickly and may encounter multiple offers on homes in hot markets like Vancouver and Kelowna. Having financing pre-approved and a solid understanding of your budget will help in a competitive environment.

What Lower Rates Mean for Sellers

1. More Potential Buyers
With the cost of borrowing lowered, more people are able to afford home purchases, which can benefit sellers by expanding the pool of interested buyers. This demand may help properties sell faster and possibly at higher prices, especially in areas where housing demand already outpaces supply.

2. Higher Selling Prices
Low interest rates can drive up home prices as buyers are willing to pay more due to the affordability of loans. This is especially beneficial for sellers in high-demand areas. However, sellers should still be mindful of market trends and work with a realtor to set realistic pricing to attract serious buyers.

3. Opportunities for Upsizing
For current homeowners looking to upgrade to a larger home, low interest rates make upsizing more financially feasible. Selling a current property and taking on a new mortgage at a lower interest rate can be attractive, particularly if you’re looking to move to a more spacious home in the same area or a high-demand market.

Keep in Mind

While low rates are attractive, there are a few considerations for both buyers and sellers.

Future Rate Changes: Interest rates can rise over time, impacting future mortgage payments. Buyers should consider whether they could still afford their home if rates increase.

Market Conditions: Low rates can fuel housing demand, but the market may still face challenges like economic uncertainty or supply shortages. Both buyers and sellers should remain informed on these factors.

In summary, recent Bank of Canada rate cuts provide an opportunity for both homebuyers and sellers in BC. Interested in how these rates changes may affect you personally? Looking to make a move? Reach out!