Inventory Rises As Vancouver Market Awaits Buyer Rebound

While borrowing costs have eased, September brought little relief for the Vancouver real estate market. Overall home sale activity has continued on a modest decline and the market remains in a period of adjustment. Though inventory levels carried on a steady increase, buyer demand is lagging behind.

A total of 6,144 new listings hit the market in September a 12.8% increase compared to the 5,446 new listings in September 2023. Inventory is also 16.7% above the 10-year seasonal average, providing buyers with much more selection. But despite increased options, sales activity remained sluggish. A total of 1,852 residential properties were sold in September, representing a slight 3.8% decrease from the 1,926 sales recorded in September 2023. However this decline becomes more pronounced when compared to the 10-year seasonal average of 2,502 sales, marking a significant 26% drop. These numbers indicate that despite lower borrowing rates, buyer activity still has yet to pick up momentum, leaving many sellers to contend with a slower sales environment.

““Real estate watchers have been monitoring the data for signs of a renewed strength in demand in response to recent mortgage rate reductions, but the September figures don’t offer the signal that many are watching for. Sales are now tracking slightly below our forecast, but we remain optimistic sales will still end 2024 higher than 2023.””

— Andrew Lis | REBGV Director, Economics and Data Analytics

Modest Month-Over-Month Pricing Declines & Edging Closer To A Buyer's Market

The sales-to-active listings ratio for September now sits at 12.8% -just above the threshold for a buyers’ market. Detached homes are at a ratio of 9.1%, while attached properties and apartments stand at 16.9% and 14.6%. 

September marks the fourth consecutive month of decline for the overall benchmark price of a residential property in Vancouver, now an average of $1,179,700 - a 1.8% decrease compared to September 2023 and a 1.4% decrease from August 2024.

• Detached Homes: Sales reached 516, down 9.8% year-over-year. The benchmark price is $2,022,200, representing a 0.5% increase from last year but a 1.3% decline month-over-month.

• Apartments: Sales totalled 940, down 4.9% from September 2023. The benchmark price for apartments now stands at $762,000, down 0.8% from both last year and the previous month.

• Attached Homes: With 378 sales, this category saw a 7.4% increase in activity compared to last year. The benchmark price is $1,099,200, reflecting a 0.5% decline year-over-year and a 1.8% drop from August 2024.

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Looking Ahead, Will Rate Cuts Revive Buyer Demand This Fall?

With two more Bank of Canada rate decisions expected before the year ends, many are hopeful that further rate cuts will encourage more buyers to re-enter the market. For now, the increased supply of homes, coupled with lower sales activity, has continued to put downward pressure on prices. If borrowing costs continue to ease alongside reduced prices, buyers may find this an opportune moment to capitalize on the current market conditions. We could see increased demand later in the fall following future rate announcements. In the meantime, sellers should prepare for a longer-than-usual market cycle as demand continues to recalibrate. However, evolving market conditions in the coming months could also present more opportunities. As always, ensuring that your home is competitively priced is critical—especially in the current landscape with reduced buyer activity.

If you're considering selling, reach out for a complimentary home equity health check, and take the first step to understand how much your home is really worth today.