Increase in Listings, Decrease in Transactions

According to Greater Vancouver Realtors (GVR), new listings on Metro Vancouver’s MLS increased by about 20 per cent year-over-year last month, leading to a healthy level of inventory. However, residential sales totaled 2,333, which was 5.0 per cent lower than the same period last year and nearly 18 per cent below the 10-year seasonal average.

‘Transaction levels below historical norms in the midst of summer’

Despite a quarter percentage point cut to the Bank of Canada’s policy rate, buyers have continued to show hesitancy in the July data, as noted by Andrew Lis, GVR’s director of economics and data analytics.

With a recent half percentage point decrease in the policy rate and ample inventory available, it is surprising that transaction levels remain below historical norms as we reach the midpoint of summer.

Healthy inventory and balanced conditions

In July, Metro Vancouver had a total of 14,326 properties listed for sale, marking a 39.1 per cent increase from July 2023 and 21.5 per cent above the 10-year seasonal average.

Sales-to-active listings ratios for all property types were 16.9 per cent (12.8 per cent for detached homes, 20.1 per cent for attached homes, and 19.3 per cent for apartment homes).

Lis states that with balanced market conditions and a healthy inventory, price trends have stabilized with minor declines seen on a monthly basis across all segments.

It remains to be seen if lower prices and improved borrowing costs will entice buyers as we head into the fall market, with Lis highlighting that it may take some time for these improvements to translate into higher transaction levels.

He emphasizes that it is still early days, and they will monitor the market for signs of increased transaction activity in the coming months.

Sales and prices overview

The MLS Home Price Index composite benchmark price for residential properties in Metro Vancouver is currently $1,197,700, showing a 0.8 per cent decrease from July 2023 and June 2024.

Detached home sales in July reached 688, a 1.0 per cent increase compared to July 2023, with a benchmark price of $2,049,000, 2.1 per cent higher than July 2023.

Apartment home sales totaled 1,192, showing a 6.9 per cent decrease from July 2023, with a benchmark price of $768,200, 0.3 per cent lower than July 2023.

Attached home sales reached 437, a 6.2 per cent decrease compared to July 2023, with a benchmark price of $1,124,700, 1.4 per cent higher than July 2023.

For the full report, click here.