The Metro Vancouver housing market remained stable in October 2023, despite some notable shifts in sales and listings. While the numbers may not be reaching the highs of previous years, there are interesting trends to explore. In this blog post, we will dive into the latest data and insights from the Real Estate Board of Greater Vancouver (REBGV) to understand the state of the Metro Vancouver housing market.
"Prompton has seen a steady flow of new listings for October, lack of buyers remains prominent. The pre-sale market has picked up across the region for our REALTORS as select buyers feel more confident in future builds over current homes. Historically as we enter the months of November and December, home sales slow as sellers and buyers settle in for the holiday season."
- James Walker, Prompton Managing Broker.
Residential Sales Increase
In October 2023, Metro Vancouver recorded 1,996 residential property sales, marking a 3.7% increase from the 1,924 sales in October 2022. While this may seem like a positive sign, it's important to note that these figures are still 29.5% below the 10-year seasonal average for October, which stands at 2,832.
More Choices for Home Buyers
One of the notable developments is the surge in newly listed properties. There were 4,664 detached, attached, and apartment properties newly listed for sale in October 2023, a 15.4% increase compared to the same month in 2022. This increase has provided homebuyers with more options, surpassing the 10-year seasonal average for October by 4.8%.
Supply and Demand Dynamics
The Director of Economics and Data Analytics at REBGV, Andrew Lis, emphasized the importance of understanding the supply and demand dynamics in the market. With more properties hitting the market and an increased supply of resale inventory, market conditions are gradually shifting towards a more balanced state. Notably, multifamily properties are currently more active than detached homes. However, despite this equilibrium, it's crucial to remember that demand remains weaker than expected, with sales still nearly 30% below the long-term average.
Sales-to-Active Listings Ratio
The sales-to-active listings ratio for October 2023 provides further insights into market conditions. The ratio is 17.9% for all property types, indicating a move towards more balanced conditions. However, it's essential to remember that downward pressure on home prices can occur when the ratio remains below 12% for an extended period. On the other hand, prices tend to rise when the ratio surpasses 20% over several months.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,196,500. This represents a 4.4% increase over October 2022, but it's also a 0.6% decrease compared to September 2023. While detached home sales experienced a slight decrease, apartment and attached home sales showed modest increases. The benchmark prices for these property types have seen fluctuations but remain relatively stable.