Buyers respond to interest rate cuts, pushing home sales to their highest levels in months
After a sluggish period, October brought a surge in home sales to Metro Vancouver, spurred by interest rate cuts that enticed hesitant buyers back into the market.
Home sales across the region reached 2,632, marking a 31.9% year-over-year increase, according to the Greater Vancouver REALTORS® (GVR). This surge brought activity to within 5.5% of the 10-year seasonal average, signalling renewed buyer interest after months of uncertainty.
"Typically, reductions to mortgage rates boost demand, and the strong October sales numbers suggest buyers may finally be responding to lower borrowing costs after waiting on the sidelines for months,” said Andrew Lis, director of economics and data analytics at GVR.
“To some market watchers, this rebound may come as a surprise, but with four consecutive rate cuts from the Bank of Canada – and more likely to come on the horizon – it was only a matter of time until signs of renewed strength in demand showed up."
In addition to a rise in sales, Metro Vancouver saw an increase in new listings, with 5,452 homes added to the MLS in October, up 16.9% from last year and 20% above the 10-year seasonal average.
The region’s total listings reached 14,477, reflecting a 24.8% increase over October 2023. This influx of inventory has helped balance supply and demand, with a sales-to-active listings ratio of 18.8% across property types – 13.4% for detached homes, 22.5% for attached, and 22.2% for apartments.
This balance is crucial, as historical trends indicate that prices experience downward pressure when the ratio dips below 12% and upward pressure above 20%.
Price growth remained modest, with the overall benchmark price for residential properties at $1,172,200, down 1.9% from last October and a slight 0.6% drop from September.
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Though the recent jump in sales has caught attention, Lis noted that it’s too soon to predict a long-term trend.
"Recent data shows that market conditions have been decidedly balanced, with prices easing over the past few months,” he said in GVR’s housing market report. “With the recent uptick in sales however, the attached and apartment segments are now tilting toward a seller’s market with the detached segment not far behind, suggesting the recent period of price moderation may be nearing an end."
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