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Recovery Anticipated Following Interest Rate Reductions
Homes across the Greater Vancouver Region continued to sell, with steady activity
following three consecutive 25-basis-point interest rate cuts by the Bank of Canada—
the first time this has happened since the 2009 financial crisis. While analysts
anticipated a more robust second half of the year, there is still optimism for a positive
shift in the market in the coming months despite September’s more moderate
performance.
“Real estate watchers have been monitoring the data for signs of renewed strength in
demand in response to recent mortgage rate reductions, but the September figures
don’t offer the signal that many are watching for,” Andrew Lis, GVR’s director of
economics and data analytics said.
The average property in Greater Vancouver sold for $1,255,644 in September,
reflecting flat growth month-over-month and a 3.7 per cent decline compared to last
year. However, this overall figure doesn’t fully capture the contrasting trends between
the detached and condo markets, which show more divergence. The market remains
well-supplied, with 14,346 active listings by the end of the month. New listings also
surged, with 6,138 properties added in September. Sales totalled 1,838, showing
modest declines of 3 per cent from the previous month and 4 per cent year-over-year.
The detached market showed a notable rebound after months of decline. Having
dropped from an average sales price of $2,348,003 in June to just under $2.1 million in
August, the average detached property sold for $2,190,630 in September. This marked
a $97,928 monthly increase, bringing the annual price change to slightly above par.
Inventory for detached homes rose to 5,784 units, a 25 per cent year-over-year
increase, while sales saw a 1 per cent monthly gain—the first increase in three months.
On the other hand, the condo market experienced a significant pullback, with the
average sales price falling $75,621, resulting in an average price of $766,822. This
$75,000 monthly drop represents the largest single-month condo price decline on
record. While average prices can be volatile, the median price also reflected this
downturn, marking the second-largest monthly decline on record by this measure as
well.
With an ample supply of 6,353 condos 31 per cent above the ten-year monthly average
—price pressures have intensified. The 914 condo sales in September represented a
24 per cent decline compared to the ten-year monthly average.
The townhome market had a steadier month, avoiding the volatility seen in other
segments. The average townhome sold for $1,110,914, reflecting a 1.5 per cent
monthly gain. Inventory levels increased to 1,651 active listings, marking a 6 per cent
monthly gain and a 42 per cent year-over-year increase. Sales totalled 316 units,
representing an 11 per cent monthly gain and a 4 per cent increase year-over-year.
Looking ahead, the Greater Vancouver real estate market remains in a period of
transition. While interest rate cuts by the Bank of Canada have provided some relief,
their impact on buyer activity and pricing has yet to fully materialize. Inventory levels
across all property types are higher than historical averages, putting downward
pressure on prices in some segments, especially condos. However, with steady
demand and continued interest rate adjustments, there is potential for a stronger
performance in the final quarter of the year.
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.