October is a month of transitions, from the changing colors of nature to the somewhat expected seasonal shifts in the Canadian real estate market. In this month’s real estate market report, October has shown an increase when it comes to newly listed properties, offering more choice to home buyers across Metro Vancouver*. However, sales remained modest compared to the long-term averages.
Residential Home Sales
The Real Estate Board of Greater Vancouver reports that residential sales in the region totalled 1,996 in October 2023, a 3.7% increase from the 1,924 sales recorded in October 2022. This total is 29.5% below the 10-year seasonal average (2,832) for October.
Andrew Lis, Director of Economics and Data Analytics at the REBGV, commented, “With properties coming to market at a rate roughly five per cent above the ten-year seasonal average, there seems to be a continuation of the renewed interest on the part of sellers to participate in the market we’ve been watching this fall. Counterbalancing this increase in supply, however, is the fact sales remain almost 30 per cent below their ten-year seasonal average, which tells us demand is not as strong as we might expect this time of year.”
There were 4,664 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in October 2023. This represents a 15.4% increase compared to the 4,043 properties listed in October 2022 and is 4.8% above the 10-year seasonal average (4,449) for the month.
Across all detached, attached and apartment property types, the sales-to-active listings ratio for October 2023 is 17.9%. By property type, the ratio is 12.9% for detached homes, 20.9% for attached, and 21.5% for apartments.
The total number of properties^ currently listed for sale on the MLS® system in Metro Vancouver is 11,599, a 12.6% increase compared to October 2022 (10,305). This change is also 0.6% above the 10-year seasonal average (11,526).
Home Price Data Analysis
Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.
“With more supply in the form of resale inventory, and weaker demand in the form of slower sales, we’ve seen market conditions overall adjust towards more balanced conditions. It’s noteworthy that the multifamily segment remains more active than the detached segment at this time,” Lis said. “While the highest borrowing costs we’ve seen in over a decade continue to constrain affordability, a silver lining for buyers is that price increases have abated with these more balanced market conditions, meaning purchasing power is holding steady for the moment.”
Metro Vancouver Home Sales by Property Type
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 and a 0.6% decrease compared to September 2023.
Sales of detached homes in October 2023 reached 577, a 0.7% decrease from the 581 detached sales recorded in October 2022. The benchmark price for a detached home is $2,001,400. This represents a 5.8% increase from October 2022 and a 0.8% decrease compared to September 2023.
Sales of apartment homes reached 1,044 in October 2023, a 4.9% increase compared to the 995 sales in October 2022. The benchmark price of an apartment home is $770,200. This represents a 6.4% increase from October 2022 and a 0.2% increase compared to September 2023.
Attached home sales in October 2023 totalled 356, a 6.6% increase compared to the 334 sales in October 2022. The benchmark price of a townhouse is $1,100,500. This represents a 6% increase from October 2022 and a 0.2% increase compared to September 2023.
Welcome to an Elevated Real Estate Experience
At Stilhavn, we continue our relentless pursuit of excellence because it’s our intrinsic belief that our clients deserve better than the status quo. When you become a client with Stilhavn you become a client for life, and it is our privilege to serve not only our local Okanagan market, but further corners within the Lower Mainland.
We keep our fingers on the pulse, we collaborate extensively across our teams, and we are committed to providing an elevated experience when it comes to your next buying or selling journey.