August 2024 Market Update: Navigating a Shifting Market in Metro Vancouver

As summer draws to a close, the Metro Vancouver real estate market reflects a period of recalibration. August typically sees slower activity compared to earlier summer months, and this year was no exception. Here’s an in-depth look at the trends shaping our local market:

Sales Activity Remains Below Historical Averages

• Residential sales in August totaled 1,904, marking a 17.1% decrease from the same month last year and sitting 26% below the 10-year seasonal average.

• Buyers continue to feel the weight of higher borrowing costs despite two recent reductions in the Bank of Canada's policy rate over the summer.

A Balanced Market in the Making

• The market-wide sales-to-active listings ratio for August stood at 14.3%, firmly placing us in balanced conditions.

• By property type:

  • Detached homes: 9.6%

  • Townhomes: 18%

  • Apartments: 17.2%

• Historically, ratios below 12% indicate downward pressure on prices, while sustained levels above 20% drive prices upward.

Price Adjustments Reflect Buyer Hesitation

• The MLS® Home Price Index composite benchmark price across all residential properties is $1,195,900, a 0.9% decrease from last year and a negligible 0.13% dip from July.

  • Detached homes: $2,048,400 (+1.8% YoY)

  • Townhomes and apartments remained relatively stable, with no significant fluctuations.

Inventory Growth Offers Buyers More Options

• The total number of active listings rose significantly to 13,812, a 37% increase from August 2023 and 20.8% above the 10-year seasonal average.

• This inventory growth gives buyers a broader range of choices as sellers enter the market in anticipation of fall activity.

Looking Ahead to Fall

• With September historically bringing increased activity, the question remains whether recent rate cuts will encourage buyers to re-engage with the market.

• Inventory levels suggest opportunity, but affordability challenges persist.

Local Insights for Burnaby and New Westminster

• In Burnaby:

  • Detached homes benchmarked at $2,048,400, showing a year-over-year increase of 1.8%.

  • Townhomes remained a solid investment, with a benchmark price of $945,700.

  • Apartments benchmarked at $768,200, reflecting overall stability in this segment.

• In New Westminster:

  • Detached home benchmarks rose 2.2% year-over-year to $1,613,500.

  • Townhomes maintained steady growth, while apartments offered affordability with a benchmark price of $656,800.

What This Means for You

Whether you're considering buying, selling, or investing, understanding these market dynamics is crucial. The transition into a balanced market offers opportunities, but timing and strategy are key in navigating current conditions.

If you'd like tailored advice on how to leverage this market for your real estate goals, reach out today. Together, we can make informed decisions to position you for success!