Metro Vancouver Real Estate: October 2023 Market Update

A Season of Stability and Choices

As autumn settles in, Metro Vancouver's housing market is exhibiting signs of stability, with a notable increase in new listings offering more choices to prospective home buyers. However, the sales figures are still trailing behind long-term averages, painting a complex picture of the current market dynamics.

Sales Analysis: A Closer Look

In October 2023, Metro Vancouver's residential sales saw a modest increase of 3.7% from the previous year, totaling 1,996. However, this number is still 29.5% below the 10-year October average of 2,832. This gap suggests that, despite some positive trends, the market is still navigating through a period of adjustment.

Andrew Lis from the Real Estate Board of Greater Vancouver points out a significant trend. There's a marked interest among sellers to engage in the market, evidenced by property listings surpassing the ten-year average by about 5%. Yet, this surge in listings is contrasted by sales figures, which remain nearly 30% below their typical seasonal levels, hinting at a more subdued demand than expected for this time of year.

New Listings and Inventory Insights

October brought in 4,664 new listings across detached, attached, and apartment properties, marking a 15.4% increase from October 2022 and surpassing the 10-year average by 4.8%. This influx is a healthy sign, indicating a more dynamic market with greater options for buyers.

The total active listings stand at 11,599, which is 12.6% higher than the previous year and slightly above the 10-year average. This increase in inventory is a crucial factor in maintaining market equilibrium.

Understanding the Sales-to-Active Listings Ratio

The sales-to-active listings ratio, a critical indicator of market health, stands at 17.9% for October 2023. Breaking it down: detached homes are at 12.9%, while attached homes and apartments are at 20.9% and 21.5%, respectively. Historically, a sustained ratio below 12% can lead to downward pressure on prices, whereas figures above 20% for several months can lead to price increases.

Market Dynamics and Pricing Trends

With a higher number of properties available for resale and a slower pace of sales, the market is moving towards a more balanced state. This balance is particularly evident in the multifamily segment, which remains more active than the detached segment.

High borrowing costs, the most significant in over a decade, continue to impact affordability. However, the silver lining for buyers is that price increases have stabilized, allowing purchasing power to remain constant for the time being.

Price Benchmarks and Property Sales

The composite benchmark price for all residential properties now stands at $1,196,500, up 4.4% from last October but down 0.6% from September 2023.

In October 2023, detached home sales slightly decreased by 0.7% compared to last year, with the benchmark price at $2,001,400. This price reflects a 5.8% annual increase but a 0.8% decrease from September.

Apartment sales experienced a 4.9% year-over-year increase, with the benchmark price at $770,200, a 6.4% increase from the previous year and a slight 0.2% uptick from September.

Attached home sales rose by 6.6% compared to last October. The benchmark price for a townhouse is now $1,100,500, showing a 6% increase from the previous year and a 0.2% increase from the previous month.

Conclusion

October's real estate landscape in Metro Vancouver underscores a market seeking balance amid fluctuating demand and supply. With an increasing array of choices for buyers and a trend towards stability, this is a pivotal time for both buyers and sellers. Engaging with a knowledgeable realtor can provide valuable insights and guidance in navigating this evolving market.