October Home Sales Up 12.8% From September, Down 45.5% From Last Year

Buyer activity continued on a  downward trend this October, as anticipated given the rising interest rates and uneasiness surrounding our economic outlook. October saw a total of 1,903 residential sales in October, a 12.8% increase from the 1,687 units sold in September, but a decrease of 45.5% compared to the 3,494 sales registered in October 2021. Despite an uptick in activity compared to September 2022, October’s sales were still 33.3% below the October 10-year average.

"Inflation and rising interest rates continue to dominate headlines, leading many buyers and sellers to assess how these factors impact their housing options. With sales remaining near historic lows, the number of active listings continues to inch upward, causing home prices to recede from the record highs set in spring of 2022.”  

Andrew Lis | REBGV Director, Economics and Data Analytics
 

Looking at the amount of homes being listed shows a similar trend. Last month, a total of 4,033 residential properties — single-detached, townhouses, or apartments — were newly listed in Metro Vancouver, bringing the total number of homes currently listed to 9,852. This time last year, the total was 8,034, which means there has been a 22.6% increase in the amount of homes being listed for sale.

Marginal Month-Over-Month Price Decreases, Across Property Types

As the pace of home sales has continued to slow, the number of listings is on the rise.  This balancing of supply and demand is expected to continue edging prices down, the benchmark price for a Metro Vancouver is currently $1,148,900. This represents a 2.1% increase from October 2021, a 9.2% decrease from six months ago, and a 0.6% decrease compared to September 2022

Across property types, single-detached homes are now at a benchmark price of $1,892,100, a 0.7% decrease from September, but still 1.6% higher than October 2021. The benchmark price for townhouses is $1,043,600, a 0.5% decrease from September, but a 7.1% increase compared to October 2021. the benchmark price for apartments is now $727,100, a 0.2% decrease from September, but a 5.1% increase compared to October 2021 

Thinking Of Buying? Don't Be Put Off By Higher Rates

Inflation continues to run hot, and on October 26th, the Bank of Canada further raised its benchmark interest rate to temper it. However, this higher rate environment may have important potential benefits for buyers. Higher rates mean your interest payments will increase, for a given principal size. However, when interest rates rise, house prices fall. The Bank of Canada signaled on October 26th that benchmark interest rates would continue to increase in the near future, however, there are positive signs on the inflation front, which may mean lower interest rates in the medium term. The Bank of Canada expects inflation to decline sharply in 2023, which would allow them to relax their tight monetary policy. This is good news for prospective buyers - there may be a great opportunity now to buy low, if you can sustain the higher interest rates in the short term.

Have questions on our shifting market and how rising rates impact you?We’re here to help. Reach out today!

Interested in what your home is worth?

Many people often wonder what their home is worth, and would rather do that without discussing with a realtor.  While we love to sit down with our clients, we also have an easy online tool that can give you a little suggestion as to what your house might be worth. 

Head on over to our website to see what your home is worth.