GVA sees a rise in available properties but lower sales, leaving housing prices under pressure
Vancouver remains Canada’s least affordable city for homeowners, with the latest data showing home sales in the area dipped in September compared to the same month last year.
Data from the Greater Vancouver Real Estate Board (GVAREB) showed home sales fell 3.8% year over year, while new listings increased, adding downward pressure on housing prices.
In September, there were 1,852 sales of existing residential properties, marking a 26% drop below the 10-year average and a 2.7% decrease from August (not seasonally adjusted).
The board said this indicates that recent interest rate cuts have not yet triggered the expected rebound in market activity.
“September figures don’t offer the signal that many are watching for,” said Andrew Lis, director of economics and data analytics at the GVAREB.
Despite three rate cuts by the Bank of Canada this year, bringing its policy rate to 4.25%, the market has yet to see a significant upswing. Lis pointed out that there are still two more policy rate decisions expected this year, which could provide an opportunity for further rate reductions.
“With two more policy rate decisions to go this year, and all signs pointing to further reductions, it’s not inconceivable that demand may still pick up later this fall should buyers step off the sidelines,” he said.
However, the current landscape shows a greater number of sellers than buyers. The report showed there were 6,144 newly listed properties last month, up 12.8% from September last year, bringing the total number of active listings to 14,932. This represents a 31% increase from the previous year and 24% above the 10-year seasonal average.
The increase in supply, combined with the dip in sales, has put slight pressure on prices. The composite benchmark price for all residential properties in the Greater Vancouver area stood at $1,179,700 in September, a 1.8% decrease from the same time last year and a 1.4% drop from August.
Detached homes saw a benchmark price of $2.02 million, up 0.5% year-over-year but down 1.3% from August. Apartment prices averaged $762,000, down 0.8% from both last year and the previous month.
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The sales-to-active listings ratio, a key indicator of price trends, was 12.8% across all residential property types in September, including 9.1% for detached homes. The board noted that downward pressure on prices typically occurs when this ratio falls below 12%.
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