Vancouver's once red-hot real estate market is showing clear signs of cooling as new data reveals a significant downturn in residential sales activity. The latest figures from the Real Estate Board of Greater Vancouver paint a picture of a market in transition.
Sharp Decline in Home Sales
The numbers tell a compelling story: home sales across the Metro Vancouver region dropped by 14.2% in October compared to the same period last year. This represents a substantial slowdown from the 1,296 transactions recorded in October 2022 to just 1,112 sales this past October.
Inventory Builds as Market Shifts
While sales are declining, available properties are accumulating. The region saw 4,664 new listings hit the market in October alone, contributing to a total inventory of 11,599 homes available for purchase. This represents a significant 13.5% increase compared to October 2022's inventory levels.
Price Resilience Amid Market Cooling
Despite the sales slowdown, property values have shown remarkable stability. The composite benchmark price for all residential properties in Metro Vancouver reached $1,196,500, reflecting a 4.4% increase over the past year. However, this figure represents a slight 0.2% decrease from September 2023 levels, suggesting prices may be plateauing.
Market Conditions Favor Buyers
The sales-to-active listings ratio, a key indicator of market pressure, has dropped to 19.2% across all property types. This positions the market firmly in balanced territory, a significant shift from the seller's market conditions that dominated recent years. For detached homes, the ratio sits at 12.4%, while townhomes show stronger activity at 24.1%.
Regional Perspectives and Future Outlook
Andrew Lis, the Real Estate Board of Greater Vancouver's director of economics and data analytics, noted that while sales remain below historical averages, the market is showing signs of stabilization after the Bank of Canada's interest rate pauses. The combination of higher borrowing costs and increased inventory is creating more balanced conditions, giving buyers greater negotiating power and more time to make decisions.
