As October 2024 has come to a close, the Metro Vancouver housing market has seen a dramatic surge in buyer demand, marking a significant shift from previous months of slower activity. Residential sales saw a notable 31.9% increase year-over-year in October. Let’s take a closer look at the latest data from the Multiple Listing Service® (MLS®) and explore the potential implications for both buyers and sellers in the coming months.
A Closer Look at the Numbers
October 2024 marked a strong recovery for the Metro Vancouver housing market, with residential sales registering a total of 2,632 transactions. This represents a 31.9% increase compared to the 1,996 sales in October 2023, though it still falls 5.5% below the 10-year seasonal average of 2,784. This surge in sales follows several months of sluggish activity, where home sales had been tracking well below historical averages.
On the supply side, October saw 5,452 new listings, marking a 16.9% increase compared to the 4,664 properties listed in October 2023. This figure is also 20% above the 10-year seasonal average of 4,545.
Market Balance and Pricing Trends
With more inventory available and a sharp uptick in buyer demand, the sales-to-active listings ratio for October 2024 stands at 18.8%. By property type, the ratios are as follows:
Detached Homes: 13.4%
Attached Homes: 22.5%
Apartments: 22.2%
A ratio below 12% typically puts downward pressure on prices, while ratios above 20% suggest upward price momentum. Currently, the overall market shows a balanced trend, but the attached and apartment segments are beginning to lean toward a seller’s market, with detached homes not far behind.
The MLS® Home Price Index (HPI) composite benchmark price for all residential properties in Metro Vancouver is $1,172,200, reflecting a 1.9% decrease compared to October 2023 and a 0.6% decrease from September 2024. While the overall benchmark price is lower than a year ago, the uptick in sales suggests that certain property types, particularly attached homes and apartments, could see price pressure in the near future.
Here’s a closer look at benchmark prices by property type:
Detached Homes: $2,002,900 (up 0.3% from October 2023, down 1% from September 2024)
Apartment Homes: $757,200 (down 1.6% from October 2023, down 0.6% from September 2024)
Attached Homes: $1,108,800 (up 0.4% from October 2023, up 0.9% from September 2024)
Future Outlook and Considerations
Looking ahead, the recent surge in buyer demand driven by lower mortgage rates could be the beginning of a more active market. As the Bank of Canada continues to cut rates, more buyers may be encouraged to enter the market, especially if borrowing conditions improve further.
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