Seasonal Slowdown: Vancouver Real Estate
As the summer season comes to an end, we observe that elevated borrowing expenses have commenced exerting their influence upon the housing market within the Metro Vancouver area, manifesting in anticipated manners such as the moderation of price appreciation and a deceleration in transaction activity, in line with previous years seasonal trends.
According to data released by the Real Estate Board of Greater Vancouver (REBGV), the aggregate number of residential property transactions within the region amounted to 2,296 in the month of August 2023. This figure represents an increase of 21.4 percent when compared to the 1,892 transactions documented during the same period in the preceding year, August 2022. It is noteworthy, however, that this tally stood 13.8 percent below the 10-year historical average for this particular season, which traditionally registers at 2,663 transactions.
“It’s been an interesting spring and summer market, to say the least” Andrew Lis, REBGV’s director of economics and data analytics said. “Borrowing costs are fluctuating around the highest levels we’ve seen in over ten years, yet Metro Vancouver’s housing market bucked many pundits’ predictions of a major slowdown, instead posting relatively strong sales numbers and year-to-date price gains north of eight per cent, regardless of home type.”
Real Estate Sales Numbers In Vancouver: August 2023
There were 3,943 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in August 2023. This represents an 18.1 per cent increase compared to the 3,340 homes listed in August 2022. This was 5.3 per cent below the 10-year seasonal average (4,164).
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 10,082, a 0.2 per cent decrease compared to August 2022 (10,099). This was 13.4 per cent below the 10-year seasonal average (11,647).
SALES TO ACTIVE RATIO
all detached, attached and apartment property types, the sales-to-active listings ratio for August 2023 is 23.9 per cent. By property type, the ratio is 14.2 per cent for detached homes, 30.3 per cent for townhomes, and 31.9 per cent for apartments.
SALES DATA – VANCOUVER HOMES
Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
Sales of detached homes in August 2023 reached 591, a 13.2 per cent increase from the 522 detached sales recorded in August 2022. The benchmark price for a detached home is $2,018,500. This represents a 3.3 per cent increase from August 2022 and a 0.3 per cent increase compared to July 2023.
Sales of apartment homes reached 1,270 in August 2023, a 27.4 per cent increase compared to the 997 sales in August 2022. The benchmark price of an apartment home is $770,000. This represents a 4.4 per cent increase from August 2022 and a 0.2 per cent decrease compared to July 2023.
Attached home sales in August 2023 totalled 422, an 18.9 per cent increase compared to the 355 sales in August 2022. The benchmark price of an attached home is $1,103,900. This represents a 3.9 per cent increase from August 2022 and a 0.1 per cent decrease compared to July 2023.
The Vancouver real estate market still favours sellers, it is still a very much seller’s market, however, we are seeing a trend towards a more balanced market.
If you are interested in getting a market update report regarding a specific area contact us directly. If you are thinking of selling you home in Vancouver we offer a complimentary home evaluation sent to you via email.