Greater Vancouver real estate’s luck might be running out. Greater Vancouver Realtors (GVR) data shows the price of a composite home slipped in August. The market has managed to avoid the significant correction seen in other major markets, but things are suddenly heading in the wrong direction. Fewer sales and rising inventory is helping to apply a second wave of downward pressure on prices as lower rates fail to bolster the market at this point.
Greater Vancouver Real Estate Prices Fell For A Third Month
The price of a composite benchmark home in Greater Vancouver.
Source: Greater Vancouver Realtors; CREA; Better Dwelling.
Greater Vancouver home prices slipped lower last month. The benchmark price of a home fell 0.1% (-CA$1,200) to CA$1,195,900 in August. Over the past year, prices have dropped 0.9% (-CA$10,861). Less than ideal but better than regions like Greater Toronto.
Vancouver Home Prices May Be In For A Double-Dip Correction
Annual price change for a composite benchmark home across Greater Vancouver, in percentage points.
Source: Greater Vancouver Realtors; CREA; Better Dwelling.
Prices have been resilient, but that might be changing. The benchmark is only 5.1% (-$64,000) lower than the record high set in April 2022, over two years ago. However, the past 3 consecutive months have moved lower, shedding over a quarter of the total decline since the peak. Most of Canada’s major markets have seen a double-dip correction when it comes to annual growth, but Greater Vancouver just started its second wave.
Greater Vancouver Home Sales Were 26% Below The 10-Year Average
Greater Vancouver real estate demand is generally soft and inventory is building. The region only logged 1,891 home sales in August, a drop of 17.1% since last year. GVR emphasized the weak demand, noting this volume was a whopping 26% below the 10-year average for the month.
Greater Vancouver Real Estate Inventory Is Unusually Lofty
At the same time, Greater Vancouver home sellers are showing up in stronger volumes. Annual growth of new listings climbed 4.4% to 4,104 homes in August, pushing total inventory 20.8% higher than the 10-year average.
Fewer sales and more inventory eroded the market balance, which is now weaker than last year. The sales to new listings ratio (SNLR) fell to 46.1% in August, shedding 12.1 points from last year. Both numbers are within the balanced market range of 40-to-60 percentage points, but it’s inching closer to a buyer’s market where prices are expected to fall.
Greater Vancouver real estate has been relatively resilient since rate hikes. It hasn’t made a double-digit price correction like many other markets in a similar price range, like Greater Toronto. However, it may be too early to conclude that it’s a lasting trend. The market is starting to slip, buyers are turning away despite falling rates, and the sellers are showing up in greater volumes.
Vancouver’s still a money launderers dream. Government assisted one-bedrooms going for $2k/month in Canada’s sketchiest neighbourhood.
I gather most of the price growth in Metro Vancouver is out in the burbs, because even student rentals have been empty this year.
ALL OF CANADA IS IN DOWNWARD DOGGIE POSITION. NEW USA HOUSES COST LESS THAN 400K. CANADIAN HOME AND CONDO PRICES WILL BE IN THE TANK FOR DECADES. GET YOUR MONEY OUT ASAP.
RENT IN CANADA OR STAY WITH FAMILY FRIENDS. SPEND HALF THE YEAR IN YOUR NEW USA HOUSE. PULL ALL YOUR MONEY OUT OF CANADA AND LIVE IT UP IN THE SOUTHERN USA.
Bill Ferguson? Is that you?
Glad to see someone reporting facts, instead of the “reports” by BCREA. Buyers and sellers need to look at the data themselves and not be swayed by any narrative. Very few homes are selling, prices have only started to decline. There’s likely a tax coming on the gains in our primary residences early 2025. Not the time to jump in foolishly.
The Canadian Government otherwise known as the NDP/Liberal coalition has spent zero….no time, on building the economy and our GDP… they have actually driven people with wealth out of Canada. When you drive people with wealth out of your country you end up with only poor people who cannot pay taxes. this results in everyone getting poorer and that is what is happening now.
It will be hard for even the Conservative Party to fix this mess when the current government leaves.