Metro Vancouver’s housing market is experiencing a surge in newly listed properties, with inventory rising nearly 20% year-over-year in July. Despite this increase, the number of transactions has not kept pace, highlighting a disconnect between supply and demand.
According to the Greater Vancouver REALTORS® (GVR), residential sales in the region totaled 2,333 in July 2024, a 5% decrease from the 2,455 sales recorded in July 2023. This figure is 17.6% below the 10-year seasonal average of 2,831, suggesting that buyers remain cautious despite favorable market conditions.
“The trend of buyer hesitation that began a few months ago persisted in July, even after the Bank of Canada reduced the policy rate by a quarter percentage point,” said Andrew Lis, GVR’s director of economics and data analytics. “Given the recent half-point decline in the policy rate and the abundance of inventory, it’s surprising that transaction levels are still below historical norms as we reach the mid-summer point.”
In July 2024, there were 5,597 newly listed detached, attached, and apartment properties on the MLS® in Metro Vancouver. This represents a 20.4% increase from the 4,649 properties listed in July 2023 and is 12.7% above the 10-year seasonal average of 4,968.
The total number of properties currently listed for sale on the MLS® in Metro Vancouver is 14,326, a 39.1% increase from July 2023, when there were 10,301 listings. This is also 21.5% above the 10-year seasonal average of 11,788.
The sales-to-active listings ratio for July 2024 across all property types is 16.9%. For detached homes, the ratio is 12.8%; for attached homes, it is 20.1%; and for apartments, it is 19.3%. Historical data suggests that home prices face downward pressure when the ratio stays below 12% for a sustained period, while upward pressure occurs when it exceeds 20% over several months.
“The market is experiencing balanced conditions, with inventory levels not seen in years,” said Lis. “Price trends across all segments have leveled out, with modest declines month over month. While it’s uncertain if softening prices and improved borrowing costs will encourage buyers as we approach the fall market, it’s worth noting that it can take time for better borrowing conditions to translate into increased transactions. We will be monitoring the market for signs of increased activity in the coming months.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,197,700. This represents a 0.8% decrease from July 2023 and a 0.8% decrease compared to June 2024.
Detached home sales in July 2024 reached 688, a 1% increase from the 681 detached sales recorded in July 2023. The benchmark price for a detached home is $2,049,000, representing a 2.1% increase from July 2023 and a 0.6% decrease compared to June 2024.
Sales of apartment homes totaled 1,192 in July 2024, a 6.9% decrease from the 1,281 sales in July 2023. The benchmark price for an apartment home is $768,200, which is a 0.3% decrease from July 2023 and a 0.7% decrease compared to June 2024.
Attached home sales in July 2024 amounted to 437, a 6.2% decrease from the 466 sales in July 2023. The benchmark price for a townhouse is $1,124,700, representing a 1.4% increase from July 2023 and a 1.2% decrease compared to June 2024.