It seems the fall weather hasn’t deterred sellers from entering the local property market last month, however buyers remained cautious, with demand levels sitting below the region’s long-term averages.
Andrew Lis, Director, economics and data analytics at the Real Estate Board of Greater Vancouver (REBGV) released comment as to why September’s records may have showed fewer buyers across Metro Vancouver*. He shared that, “With the Bank of Canada and other central banks around the globe hiking rates in an effort to stamp out inflation, the cost to borrow funds has risen substantially over a short period. This has resulted in a more challenging environment for borrowers looking to purchase a home, and home sales across the region have dropped accordingly.”
Housing Market at a Glance
Last month, the REBGV reported that home sales in the region totalled 1,687. This was almost half (46.4%) the number of the sales that were recorded last year in the same month (3,149). Comparing sales figures from last month to earlier on in August, sales had dropped by 9.8% (down from 1,870).
Overall, last month’s sales were 35.7% below the 10-year September sales average.
Across Metro Vancouver, 4,229 detached, attached and apartment properties were newly listed for sale throughout September on the Multiple Listing Service® (MLS®) – 18.2% less than the 5,171 homes listed back in September of 2021, and 27.1% down from a month earlier in August, when 3,328 homes came on the market.
Looking at the total number of homes currently listed for sale across the region on the MLS® system, 9,971 properties are available right now for potential buyers to swoop up. This figure has grown 8% over September 2021 and has also climbed 3.2% since August just been (9,662).
Lis, from the REBGV, goes on to add, “With fewer homes selling and new listings continuing to come to market, inventory is beginning to accumulate, providing buyers with more selection compared to last year.”
Sales-to-Active Listings Ratio and Composite Benchmark Price
For all property types, the sales-to-active listings ratio this year for September was 16.9%. By property type, that ratio came out as:
Detached homes: 12.4%
Generally, analysts say 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.
For all residential properties in Metro Vancouver, the MLS® Home Price Index composite benchmark is currently $1,155,300. This represents a 3.9% increase over September last year but a 2.1% dip from August just two months ago.
Metro Vancouver Home Sales by Property Type
Last month throughout September, detached homes sales reached 525 – a 44.7% decrease from the 950 detached sales recorded in the same month a year ago. The benchmark price for a detached home is $1,906,400. This represents a 3.8% increase from September 2021, but a 2.4% drop compared to earlier this year in August.
Apartment home sales reached 888, showing a 45.2% drop from the 1,621 sales that were recorded back in September 2021. The benchmark price of an apartment home is $728,500. This represents a 6.2% increase from the number of apartment sales listed in September last year but still a small 1.6% drop from August just been.
Attached home sales in September totalled 274 – down 52.6% compared to the 578 sales in September last year. The benchmark price of an attached home is $1,048,900, increasing by 9.1% from September 2021 but dipping 1.9% compared to August this year.
*Areas covered by the Real Estate Board of Greater Vancouver include: Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.