In this Vancouver real estate market update for October 2023, we explore the impact of increasing property listings and analyze what this means for homeowners, homebuyers, and sellers in the area.
Newly Listed Properties Increase
In October 2023, there were 4,664 newly listed properties in Metro Vancouver, marking a 15.4% increase compared to the same month in the previous year. This surge in listings offers more choices for homebuyers seeking their dream home. However, this increase in supply comes with a caveat.
Sales Remain Below Averages
Despite the boost in property listings, residential sales in the region reached 1,996 in October 2023, showing a 3.7% increase from the previous year. However, this figure remains 29.5% below the 10-year seasonal average.
Balancing Supply and Demand
Andrew Lis, REBGV’s director of economics and data analytics, notes the delicate balance between the rise in supply and the lower-than-expected demand, stating, “Counterbalancing this increase in supply, however, is the fact sales remain almost 30% below their ten-year seasonal average, which tells us demand is not as strong as we might expect this time of year.”
Sales-to-Active Listings Ratio
The sales-to-active listings ratio for October 2023 stands at 17.9%. While this signifies a shift towards a more balanced market, it’s important to note the distinctions among property types. Detached homes show a ratio of 12.9%, while attached homes and apartments have ratios of 20.9% and 21.5%, respectively.
Price Adjustments
Historical data analysis suggests that downward pressure on home prices occurs when the ratio dips below 12%, while upward pressure typically results when it surpasses 20%. With the multifamily segment remaining more active, and the influence of borrowing costs on affordability, the market has adjusted towards more balanced conditions.
What This Means for You
For homeowners, this market update suggests stable property values. Homebuyers can enjoy a broader selection of homes, although they should act prudently given the current market dynamics. Sellers should consider pricing strategies to attract potential buyers.
In conclusion, the Vancouver real estate market is in a state of transition, offering opportunities and challenges for all parties involved. Keeping a close eye on the evolving market conditions and understanding the supply-demand dynamics is crucial for making informed decisions in the real estate market.
Click here to read the latest statistics from the Real Estate Board of Greater Vancouver (REBGV).
Wondering what this means for you? Call us – we’re here to provide information and guidance so you can make the best decisions for you and your family.