The August 2023 market report released by the Real Estate Board of Greater Vancouver (REBGV) showed that sales are slowing and the higher borrowing costs have begun to make an impact on the real estate market.
“It’s been an interesting spring and summer market, to say the least. Borrowing costs are fluctuating around the highest levels we’ve seen in over ten years, yet Metro Vancouver’s housing market bucked many pundit’s 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.” Andrew Lis director of economics and data analytics.
Home Sales
There were only 2,296 residential property sales registered in August 2023 for the region. The same period last year registered 1,892 sales. This was 13.8% below the 10 year seasonal average of 2,663.
- The number of detached properties sold was 591, 13.2% more than the 522 units sold in August 2022.
- The number of apartments sold was 1270, 27.4% more than the 997 units sold in August 2022.
- The number of attached properties sold was 422, 18.9% more than the 355 units sold in August 2022.
Home Listings
In August, there were 3,943 new listings of detached, attached and apartment properties added to the Multiple Listing Service (MLS®) in Metro Vancouver.
This was an 18.1% increase compared to the 3,340 homes listed in August 2022 and was 5.3% below the 10-year seasonal average of 4,164 homes.
The total number of homes listed for sale on the MLS® system in Metro Vancouver for August was 10,082, a 0.2% decrease compared to August 2022 (10,099) and 13.4% below the 10 year seasonal average of 11,647.
Sales-To-Active-Listings Ratio
This ratio gives a better understanding of the relationship between supply and demand in the market. Downward pressure on home prices can occur when the ratio dips below 12% for a sustained period, and home prices can experience upward pressure when the ratio is above 20% for sustained periods.
For all property types, the ratio in August was 16.3%. When broken down by property types, the ratio was:
- 14.2% for detached homes – in seller market territory
- 30.3 % for townhomes – remaining in seller market territory
- 31.9% for condominiums – firmly in seller market territory
Home Prices
In August, the MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,208,400. This was 2.5% higher than August 2022 and a 0.2% decrease since July 2023.
“It’s a bit of a tortoise and hare story this year, with sales starting the year slowly, while prices increased due to low inventory levels. As fall approaches, sales have caught up with the price gains, but both metrics are now slowing to a pace that is more in-line with historic seasonal patterns, and with what one might expect given that borrowing costs are where they are,” Moore said.
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