Home buyer demand continues to strengthen in November Home sales registered in the MLS® in the Metro Vancouver market rose 28 percent year-over-year in November, building on the momentum of the 30 percent year-over-year increase seen in October.  The Greater Vancouver REALTORS® (GVR) reports that residential sales in the region totalled 2,181 in November 2024, a 28.1 per cent increase from the 1,702 sales recorded in November 2023. This was 12.8 per cent below the 10-year seasonal average (2,500).  “When we saw demand pick up in October, there was still a question over whether it was a blip in the data or the start of an emerging trend,” Andrew Lis, GVR’s director of economics and data analytics said. “While the November market isn’t quite a Cyber Monday door-crasher, buyers are continuing to take advantage of the relatively balanced market conditions while they last.”  There were 3,725 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in November 2024. This represents a 10.6 per cent increase compared to the 3,369 properties listed in November 2023. This was 5.4 per cent above the 10-year seasonal average (3,535).  The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 13,245, a 21.2 per cent increase compared to November 2023 (10,931). This is 26.1 per cent above the 10-year seasonal average (10,502).  Across all detached, attached and apartment property types, the sales-to-active listings ratio for November 2024 is 17.1 per cent. By property type, the ratio is 12.7 per cent for detached homes, 23.1 per cent for attached, and 18.7 per cent for apartments.  Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.  “Although demand has increased as we head into year-end, the number of newly listed properties coming to market in November remained sufficient to keep prices steady across all segments,” Lis said. “But as we move into the New Year, if the strength in demand continues at the current pace, and the pace of newly listed properties coming to market doesn’t keep up, it may not be long until we see the return of upward pressure on prices.”  The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,172,100. This represents a 0.9 per cent decrease over November 2023 and nearly unchanged compared to October 2024.  Sales of detached homes in November 2024 reached 626, a 19.7 per cent increase from the 523 detached sales recorded in November 2023. The benchmark price for a detached home is $1,997,400. This represents a one per cent increase from November 2023 and a 0.3 per cent decrease compared to October 2024.  Sales of apartment homes reached 1,089 in November 2024, a 28.1 per cent increase compared to the 850 sales in November 2023. The benchmark price of an apartment home is $752,800. This represents a 1.2 per cent decrease from November 2023 and a 0.6 per cent decrease compared to October 2024.  Attached home sales in November 2024 totalled 451, a 42.7 per cent increase compared to the 316 sales in November 2023. The benchmark price of a townhouse is $1,117,600. This represents a 1.8 per cent increase from November 2023 and a 0.8 per cent increase compared to October 2024. Greater Vancouver REALTORS, Dec. 3, 2024

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The Bank of Canada recently made headlines with a significant move: a 50 basis point cut to its benchmark interest rate. This decision is poised to have far-reaching implications for various sectors, particularly the real estate market. Let's delve into what this means for homeowners, prospective buyers, and the broader economy.Interest rates are a crucial lever in the economic machinery. By lowering its benchmark rate by 0.5%, the Bank of Canada aims to stimulate economic activity. Lower interest rates generally translate to cheaper borrowing costs, which can boost consumer spending and investment. For those involved in the real estate market, this is particularly significant.For existing homeowners with variable-rate mortgages, this rate cut could lead to lower monthly mortgage payments almost immediately. This extra disposable income can be redirected towards savings or other expenditures, potentially stimulating the economy further. Fixed-rate mortgage holders won't see an immediate change, but they could benefit when it's time to renew their mortgage.Prospective homebuyers stand to gain as well. Lower interest rates make mortgages more affordable, allowing buyers to qualify for larger loans or enjoy smaller monthly payments on their desired properties. This could increase demand in the housing market, driving up property values in some areas.However, it's essential to approach this development with a balanced perspective. While lower interest rates can make borrowing more attractive, they also signal underlying economic challenges that prompted the Bank of Canada's decision. Prospective buyers should consider their long-term financial stability and not rush into purchases solely based on lower rates.In summary, the Bank of Canada's 50 basis point rate cut offers a mixed bag of opportunities and considerations for those in the real estate market. Lower borrowing costs can provide immediate financial relief and make homeownership more accessible, but it's crucial to remain mindful of broader economic conditions and personal financial health. As always, consulting with financial advisors and real estate professionals can help navigate these changes effectively.

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The Bank of Canada cut its key interest rate to 4.5 per cent on Wednesday, a decision that holds profound implications for the Canadian real estate market. Lower interest rates typically mean cheaper borrowing costs, which can be a welcome relief for potential homebuyers and investors alike. Let’s delve into this market update to understand the multifaceted impact of this rate cut. First, it’s essential to note the broader economic context that led to this decision by the Bank of Canada. The rate cut is an effort to stimulate economic growth by making loans more affordable for businesses and consumers. Easier access to credit can encourage spending and investment, crucial elements for a thriving economy. This is particularly relevant for the real estate market. Lower interest rates can lead to lower mortgage rates, which can boost housing affordability. Potential buyers who were previously on the fence may now find it more feasible to enter the housing market. Additionally, this can spur increased activity among existing homeowners looking to refinance their mortgages at more favorable terms, freeing up capital for other expenditures or investments. However, while this is generally positive news for buyers, sellers can also benefit. An uptick in demand spurred by lower interest rates can drive more competition and potentially higher home prices. For real estate investors, particularly those offering rental properties, this can mean higher property values and better returns on investment. It’s also worth noting the potential long-term implications. While lower interest rates can provide immediate market stimulation, prolonged periods of low rates can lead to overheating and increased risk of bubbles. Therefore, monitoring market conditions closely is crucial. In summary, the Bank of Canada’s interest rate cut is a pivotal event with widespread ramifications for the real estate market. With more accessible credit, both buyers and sellers stand to gain, prompting shifts in market dynamics. As always, staying informed and agile in response to these changes will be key to navigating the evolving landscape.

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The number of transactions on the Multiple Listing Service® (MLS®) declined in May compared to what is typical for this time of year in Metro Vancouver. This shift has allowed the inventory of homes available for sale to continue to accumulate with over 13,000 homes now actively listed on the MLS® in the region.  The Greater Vancouver REALTORS® (GVR) reports that residential sales in the region totalled 2,733 in May 2024, a 19.9 per cent decrease from the 3,411 sales recorded in May 2023. Last month’s sales total was also down 19.6 per cent from the 10-year seasonal average for May (3,398).  “The surprise in the May data is that sales have come in softer than what we’d typically expect to see at this point in the year, while the number of newly listed homes for sale is carrying some of the momentum seen in the April data,” Andrew Lis, GVR’s director of economics and data analytics said. “It’s a natural inclination to chalk these trends up to one factor or another, but what we’re seeing is a culmination of factors influencing buyer and seller decisions in the market right now. It’s everything from higher borrowing costs, to worries about the economy, to policy interventions imposed by various levels of government.”  There were 6,374 detached, attached and apartment properties newly listed for sale on the MLS® in Metro Vancouver in May 2024. This represents a 12.6 per cent increase compared to the 5,661 properties listed in May 2023 and a seven per cent increase compared to the 10-year seasonal average (5,958).  The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 13,600, a 46.3 per cent increase compared to May 2023 (9,293). This total is also up 19.9 per cent above the 10-year seasonal average (11,344).  Across all detached, attached and apartment property types, the sales-to-active listings ratio for May 2024 is 20.8 per cent. By property type, the ratio is 16.8 per cent for detached homes, 25.1 per cent for attached, and 22.5 per cent for apartment properties. Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.  “With market trends now tilting back toward more balanced conditions, as the number of new listings outpaces the number of sales, we should expect to see slower price growth over the coming months,” Lis said. “Up until recently, prices were climbing modestly across all market segments. But with rising inventory levels and softening demand, buyers who’ve been waiting for an opportunity might have more luck this summer, even if borrowing costs remain elevated.”  The MLS® Home Price Index (HPI) composite benchmark price for all residential properties in Metro Vancouver is currently $1,212,000. This represents a 2.3 per cent increase over May 2023 and a 0.5 per cent increase compared to April 2024.  Sales of detached homes in May 2024 reached 846, an 18.9 per cent decrease from the 1,043 detached sales recorded in May 2023. The benchmark price for a detached home is $2,062,600. This represents a 5.9 per cent increase from May 2023 and a 1.3 per cent increase compared to April 2024.  Sales of apartment homes reached 1,338 in May 2024, a 22.7 per cent decrease compared to the 1,730 sales in May 2023. The benchmark price of an apartment home is $776,200. This represents a 2.2 per cent increase from May 2023 and a 0.3 per cent decrease compared to April 2024.  Attached home sales in May 2024 totalled 523, a 14 per cent decrease compared to the 608 sales in May 2023. The benchmark price of a townhouse is $1,145,600. This represents a 5.2 per cent increase from May 2023 and a 0.9 per cent increase compared to April 2024. Greater Vancouver REALTORS®

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The real estate market in Canada has been buzzing lately with news that the Bank of Canada has announced a 25 basis point drop in interest rates. This decision has captured the attention of both potential homebuyers and current homeowners. In this blog post, we will discuss the implications of this interest rate drop and its potential impact on the real estate market. Interest rates play a crucial role in the housing market. Lower interest rates can make borrowing more affordable, which in turn can encourage potential buyers to enter the market. With the recent drop in interest rates, we can expect to see a surge in demand for housing as more buyers take advantage of the favorable borrowing conditions. For potential homebuyers, the interest rate drop means that they can secure mortgage loans at a lower cost. This can result in significant savings over the life of a mortgage. For example, a 25 basis point drop in interest rates on a $500,000 mortgage can save homeowners thousands of dollars in interest payments over the term of the loan. Current homeowners can also benefit from the lower interest rates. It may be an opportune time for homeowners to refinance their mortgages and take advantage of the lower rates. By refinancing, homeowners can lower their monthly mortgage payments or potentially pay off their mortgages sooner. The Bank of Canada's decision to lower interest rates is a response to several factors, including the slowing global economy and the ongoing trade tensions. By lowering interest rates, the Bank of Canada aims to stimulate economic growth and maintain a healthy inflation rate. It is important to note that while lower interest rates can make borrowing more affordable, they can also cause housing prices to rise. As demand increases, so does competition among buyers, which can drive up prices. Therefore, it is crucial for potential buyers to carefully consider their budgets and financial situations before diving into the market. In conclusion, the recent interest rate drop of 25 basis points by the Bank of Canada has significant implications for the real estate market. It presents an excellent opportunity for potential homebuyers to secure mortgage loans at more affordable rates and for current homeowners to explore options to lower their monthly payments. However, it is essential to approach the market with caution and carefully consider the potential impact of rising housing prices.

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Inventory reaches highest level since the pandemic summer of 2020 Actively listed homes for sale on the MLS® in Metro Vancouver continued climbing in April, up 42 per cent year-over-year, breaching the 12,000 mark, a number not seen in the region since the summer of 2020.  Greater Vancouver REALTORS® (GVR) reports that residential sales in the region totalled 2,831 in April 2024, a 3.3 per cent increase from the 2,741 sales recorded in April 2023. This was 12.2 per cent below the 10-year seasonal average (3,223).  “It’s a feat to see inventory finally climb above 12,000. Many were predicting higher inventory levels would materialize quickly when the Bank of Canada began its aggressive rate hikes, but we’re only seeing a steady climb in inventory in the more recent data,” Andrew Lis, GVR’s director of economics and data analytics said. “The surprise for many market watchers has been the continued strength of demand along with the fact few homeowners have been forced to sell in the face of the highest borrowing costs experienced in over a decade.”  There were 7,092 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in April 2024. This represents a 64.7 per cent increase compared to the 4,307 properties listed in April 2023.   This was 25.8 per cent above the 10-year seasonal average (5,637).  The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 12,491, a 42.1 per cent increase compared to April 2023 (8,790).   This is 16.7 per cent above the 10-year seasonal average (10,704).  Across all detached, attached and apartment property types, the sales-to-active listings ratio for April 2024 is 23.5 per cent. By property type, the ratio is 17.6 per cent for detached homes, 31.0 per cent for attached, and 26.0 per cent for apartments.  Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.  “Another surprising story in the April data is the fact prices continue climbing across most segments with recent increases typically in the range of one to two per cent month-over-month,” Lis said. “The one segment that didn’t see an uptick in prices in April were apartments, which saw a 0.1 per cent decline month-over-month. This moderation is likely due to a confluence of factors impacting this more affordability sensitive segment of the market, particularly the impact of higher mortgage rates and the recent boost to inventory levels, tempering competition somewhat.”  The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,205,800. This represents a 2.8 per cent increase over April 2023 and a 0.8 per cent increase compared to March 2024.  Sales of detached homes in April 2024 reached 814, a 0.7 per cent increase from the 808 detached sales recorded in April 2023. The benchmark price for a detached home is $2,040,000. This represents a 6.3 per cent increase from April 2023 and a 1.6 per cent increase compared to March 2024.  Sales of apartment homes reached 1,416 in April 2024, a 0.2 per cent increase compared to the 1,413 sales in April 2023. The benchmark price of an apartment home is $776,500. This represents a 3.2 per cent increase from April 2023 and a 0.1 per cent decrease compared to March 2024.  Attached home sales in April 2024 totalled 580, a 16 per cent increase compared to the 500 sales in April 2023. The benchmark price of a townhouse is $1,127,200. This represents a 4.3 per cent increase from April 2023 and a 1.3 per cent increase compared to March 2024.   Greater Vancouver Realtors May 2, 2024

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