This October, Metro Vancouver's housing market saw a dip in sales compared to last year, even with a Bank of Canada rate cut. While conditions are becoming more favorable for buyers, sales are still below long-term averages. Let's break down what happened.
Key Takeaways
- Home sales on the MLS® in Metro Vancouver were 14% lower than in October 2024.
- Inventory levels are high, with 36% more homes listed than the seasonal average.
- The sales-to-active-listings ratio suggests a balanced market, with some downward pressure on prices for detached homes.
- The MLS® HPI benchmark price for all housing types is down 3% year-over-year.
October Sales and Listings
In October, realtors recorded about 2,200 home sales on the MLS®. This is a 14% decrease compared to October of the previous year. On the other hand, sellers put over 5,400 new homes on the market, which is about the same number as last year and 16% more than what's typical for this time of year.
By the end of October, there were nearly 16,400 homes listed for sale on the MLS®. That's a significant 36% above the usual number for the month. These higher inventory levels, combined with slower sales, mean buyers have more choices and more time to make a decision.
Understanding Market Balance: The Sales-to-Active-Listings Ratio
We can get a good sense of the market's balance by looking at the sales-to-active-listings ratio. This number compares how many homes were sold to how many were available for sale during the month.
Historically, when this ratio stays below 12% for a while, it usually means prices are likely to go down. When it goes above 20% for a few months, prices tend to climb.
In October, this ratio for all types of homes finished at 14%. Here's how it broke down by property type:
- Detached Homes: 11%
- Attached Homes (Townhomes): 18%
- Apartments: 16%
This suggests a fairly balanced market overall, though the lower ratio for detached homes might indicate some downward price pressure in that segment.
Home Prices in October
The MLS® HPI benchmark price for all housing types in Metro Vancouver was $1,133,000 in October. This is a 3% decrease from the same time last year.
Looking at specific property types:
- Detached Homes: The benchmark price was $1,916,000.
- Townhomes: The benchmark price was $1,067,000.
- Apartments: The benchmark price was $719,000.
What's Next for the Market?
With the Bank of Canada's fourth rate cut of the year, high inventory, and easing demand, it will be interesting to see if more buyers enter the market in the final months of 2025. The current conditions certainly seem to be creating opportunities for those looking to purchase a home.
