Autumn, a time where colours start to change, temperatures begin to drop, and leaves start to fall. It’s also a time for our local Metro Vancouver* housing market to take own its own seasonal shifts, ones which the Real Estate Board of Greater Vancouver (REBGV) have already begun to witness, with earlier price gains abating, sales slowing and inventory increasing modestly across the region.
Residential Home Sales
The REBGV reported that residential home sales^ across Metro Vancouver totalled 1,926 last month, which reflects a 13.2% increase from the 1,701 sales recorded in September last year. However, this figure still came in at 26.3% below the 10-year seasonal average (2,614).
Andrew Lis, Director of Economics and Data Analytics at the REBGV commented on recent market trends by saying, “A key dynamic we’ve been watching this year has been the reluctance of some homeowners to list their homes given that mortgage rates are the highest they’ve been in over ten years. With fewer listings coming to the market earlier this year than usual, inventory levels remained very low, which led prices to increase throughout the spring and summer months.”
Last month, there were 5,446 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) across Metro Vancouver. This represents a 28.4% increase compared to the 4,243 homes listed in the same month last year. This was 5.2% above the 10-year seasonal average (5,179).
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 11,382 – a 9.2% increase compared to September back in 2022 (10,427), but 6.2% below the 10-year seasonal average (12,136).
Sales-to-Active Listings Ratio and Composite Benchmark Price
Across all detached, attached and apartment property types the sales-to-active listings ratio for September was 17.7%. By property type, the ratio came out as:
- Detached: 12.6%
- Townhomes: 21.6%
- Apartments: 21.3%
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.
Lis continues by sharing, “In contrast to the spring and summer, the September data suggests there may be a renewed interest on the part of sellers to participate in the market, with new listing activity rising back in line with long-term historical averages. This upward shift in new listings has allowed overall inventory levels to recover modestly from the low levels we saw earlier this year”. He adds, “When we pair this dynamic with the slowdown in sales that typically occurs in the fall as a result of seasonal patterns, the outcome is more balanced market conditions overall.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,203,300. This represents a 4.4% increase over September last year, but a 0.4% decrease compared to one month earlier this year in August.
Metro Vancouver Home Sales by Property Type
Sales of detached homes last month reached 572, a 7.5% increase from the 532 detached sales recorded in September last year. The benchmark price for a detached home is $2,017,100. This represents a 5.8% increase from September 2022, but a 0.1% decrease compared to August just been.
Sales of apartment homes reached 988 this September, an 11.3% increase compared to the 888 sales in the same month last year. The benchmark price of an apartment home is $768,500. This represents a 5.8% increase from September one year ago, but a 0.2% decrease compared to August this year.
Last month, attached home sales totalled 352. This was a 28.5% increase compared to the 274 sales in September 2022. The benchmark price of an attached home is $1,098,400. This represents a 5.3% increase from September one year ago, but a 0.5% decrease compared to August just been.
All stats are courtesy of the Real Estate Board of Greater Vancouver (REBGV).
*Areas covered include: Bowen Island, 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.
^The REBGV is now including multifamily and land sales and listings in this monthly report. Previously, they only included detached, attached, and apartment sales, and these additional categories, which typically account for roughly 1-2% of total MLS® activity per month, are being included for completeness in their reporting.