August Market Update

August 2024 brought continued shifts in Metro Vancouver’s real estate market, with inventory levels rising substantially. The total number of homes actively listed for sale on the MLS® system reached 13,812, marking a 37% increase year-over-year and surpassing the 10-year seasonal average by 20.8%. However, despite the higher inventory, buyer activity remained subdued, with residential sales in the region totaling 1,904, a significant 17.1% decrease compared to August 2023 and 26% below the 10-year seasonal average.

Detached Homes:
Sales of detached homes dropped 13.9% compared to August 2023, with 509 units sold. However, the benchmark price increased by 1.8% year-over-year to $2,048,400, though it saw a slight decrease of 0.1% compared to July 2024.

Apartment Homes:
Apartment sales experienced a 20.3% decline from August 2023, with 1,012 units sold. The benchmark price for an apartment home remained relatively stable at $768,200, reflecting a slight 0.1% decrease from the previous year and no change from July 2024.

Attached Homes (Townhouses):
Attached home sales also saw a decline, down 12.3% from August 2023, with 370 units sold. The benchmark price for townhouses increased by 0.8% year-over-year to $1,119,300, with a modest 0.5% decrease compared to the previous month.

Market Dynamics:
The sales-to-active listings ratio for August 2024 stood at 14.3%, indicating a balanced market. Detached homes had a ratio of 9.6%, suggesting weaker demand, while attached homes and apartments had ratios of 18% and 17.2%, respectively. This balanced market has led to slower price growth and buyer hesitancy as many remain on the sidelines, likely influenced by higher borrowing costs despite recent interest rate cuts.

In summary, August 2024 reflects a market in transition, with rising inventory and declining sales creating more opportunities for buyers. Price growth has moderated, particularly in the apartment and townhouse segments, while detached homes continue to see slight increases in value. As the fall season approaches, market conditions may shift further depending on buyer activity and interest rate trends.