According to the Real Estate Board of Greater Vancouver (REBGV), in September 2023, the Metro Vancouver real estate market showcased shifting dynamics, as inventory levels increased, and price gains eased following the spring and summer months. Sellers seem to be regaining confidence in listing their properties, contributing to a more balanced market as we transition into the fall season.
Let’s break it down…
Active Listings: 4,551
Benchmark Price: $2,017,100
Average Days On Market: 32
Active Listings: 1,629
Benchmark Price: $1,098,400
Average Days On Market: 23
Active Listings: 4,630
Benchmark Price: $768,500
Average Days On Market: 25
The housing market in Metro Vancouver experienced a slowdown in price gains during September 2023, which is likely due to a decrease in sales and a slight increase in inventory in the area. In September 2023, there were 1,926 residential home sales in Metro Vancouver, which is a 13.2% increase from the same period in 2022. However, this number is still 26.3% below the 10-year seasonal average of 2,614.
According to Andrew Lis, the director of economics and data analytics at REBGV, a significant trend affected the market this year. Homeowners were reluctant to sell their properties due to the highest mortgage rates in over a decade. This led to a limited number of listings earlier in the year, causing prices to rise during the spring and summer months.
However, things started to look up with the emergence of new listings. In September 2023, 5,446 detached, attached, and apartment properties were listed for sale, marking a noteworthy 28.4% increase from the previous year. This figure also surpassed the 10-year seasonal average by 5.2%.
Despite the increase in inventory levels, which rose by 9.2% from September 2022, with 11,382 homes currently listed for sale, this still fell 6.2% below the 10-year seasonal average.
Balanced Market Conditions
In September 2023, the sales-to-active listings ratio for all types of properties was 17.7%. Detached homes had a ratio of 12.6%, townhomes had 21.6%, and apartments had 21.3%. Historically, if the ratio falls below 12%, prices may decrease, and if it exceeds 20% for several months, values may increase. Currently, more sellers are entering the market, this, coupled with the seasonal slowdown in fall sales, contributed to more balanced market conditions.
The current MLS® Home Price Index shows that the benchmark price for all residential properties is $1,203,300. This represents a 4.4% increase from the previous year, but a 0.4% decrease from August 2023. The sales of detached homes have risen by 7.5%, with a benchmark price of $2,017,100. Apartment sales have also increased by 11.3%, with a benchmark price of $768,500. Additionally, attached home sales have seen a significant increase of 28.5%, with a benchmark price of $1,098,400.
As always, market conditions may continue evolving, and buyers and sellers need to stay informed and adapt to changing trends.
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