As summer winds down, the fall market is shifting into full gear. This month began with an interest rate announcement from the Bank of Canada, which cut rates for the third consecutive time, bringing the overnight rate down to 4.25%. The Bank’s statements suggest a high probability of further rate cuts, as they express concerns over inflation potentially dropping too low. Their projections indicate a return to a neutral rate range of 2.25% to 3.25% by 2025.
In Vancouver, the housing market has experienced a notable decline in sales volume, making this August the fourth slowest on record. Home prices across all property types have also fallen, with the HPI, median, and average prices all showing declines. However, September is expected to see a surge in inventory as sellers prepare for the busy fall market.
The sales-to-active listings ratio has dropped, signaling a balanced market trending downward, with detached homes now in a buyer’s market. Overall, the market is expected to remain stable, as steady rate cuts bring a sense of normalcy after the rapid rate increases of the past year.
CONDOS/TOWNHOUSES:
The condo and townhouse market across Greater Vancouver and the Fraser Valley performed as expected in August, with a typical seasonal slowdown as people took vacations and prepared for the fall. Most areas experienced a decrease in inventory, except for South Surrey/White Rock, Langley, and Abbotsford, which saw slight increases, while Cloverdale saw no change. Coquitlam was the only area with a small increase in home sales, as other areas experienced declines. Average sale prices followed a similar trend, with most areas seeing decreases, although Burnaby, New Westminster, Port Coquitlam, Surrey, North Delta, and Mission recorded increases. Coquitlam saw no change in its average sale price. Despite this, several areas remain in a seller’s market for condos and townhouses, with only Burnaby, Surrey, South Surrey/White Rock, North Delta, and Mission being in a balanced market.
DETACHED HOUSES:
Shifting focus to the detached housing market, many areas saw a decrease in inventory similar to the condo and townhouse market. However, Coquitlam, Port Coquitlam, Port Moody, Pitt Meadows, and Maple Ridge experienced slight increases, while Surrey and Mission saw no change in inventory between July and August. The number of homes sold was also down in most areas, with the exceptions of South Surrey/White Rock and North Delta, which saw increases, and Cloverdale, where sales remained unchanged. In terms of average sale price, both Coquitlam and South Surrey/White Rock saw no changes between July and August. While most areas experienced slight decreases in average sale prices, a few, including New Westminster, Port Coquitlam, Port Moody, Cloverdale, and Langley, saw increases. Notably, no detached housing markets are currently in a seller’s market. Most are in a balanced market, with a few in a buyer’s market, including Coquitlam, Port Coquitlam, Port Moody, South Surrey/White Rock, and Mission.
If you have been thinking about buying or selling recently, feel free to reach out. We can create a customized plan to help you achieve your goals. Curious about your market value? Send me a quick note, and I can run some numbers based on the current market and pricing forecasts. Don’t hesitate to contact me for a detailed property analysis or an in-depth discussion about what’s happening in the real estate world. I am always happy to help. The full market report is linked below.