August is usually a bit slower for home sales than the summer months of June and July, and this year was no different. Sales are kind of stuck in place, about 20% lower than the average for the last ten years. It looks like buyers are still feeling the squeeze from higher borrowing costs, even though interest rates have been lowered a couple of times this summer.
In August, realtors saw 1,194 homes sold on the MLS. That's a 17.7% drop compared to last August. It's also 26% less than what we usually see for this time of year over the past decade. On the other hand, sellers put about 4,100 new homes on the market in August, which is a 4% increase from August 2023. By the end of the month, there were roughly 13,800 homes available for sale across the region, about 21% more than the usual amount for August.
Buyers seem to be holding back, and with normal levels of homes being listed, the number of available homes has been growing over the last few months. This is shifting the market towards a more balanced state. One way we measure this is by looking at the sales to active listings ratio. This tells us how many homes are for sale compared to how many are sold each month.
Historically, when this ratio drops below 12% for a while, home prices tend to go down. When it goes above 20% for several months, prices usually go up. In August, this ratio ended at 14% for all homes.
Looking at different types of homes:
The MLS HPI Benchmark Price for all housing types in Metro Vancouver was about $1,195,000 in August. This is a 1% decrease from last year.
Here's a breakdown by property type:
So, what's next? The Bank of Canada recently lowered the policy rate by another quarter point. Combined with September usually being a busier month for sales, the fall market might see more buyers coming back into the game. Keep an eye on the market watch section of our website for more updates.