Metro Vancouver Home Sales Surge 32% in October Amid Falling Mortgage Rates

As mortgage rates dip, Metro Vancouver’s housing market is seeing a resurgence in activity. October marked a significant boost, with home sales rising by 31.9% year-over-year. The uptick is largely due to recent interest rate cuts by the Bank of Canada, which have spurred demand from prospective buyers previously waiting on the sidelines.

Vancouver’s Housing Market Sees Strong Sales Growth

According to data from Greater Vancouver REALTORS® (GVR), a total of 2,632 properties were sold in October 2024, a jump from 1,996 in October 2023. While this increase signals renewed activity, it remains 5.5% below the 10-year seasonal average of 2,784 sales, indicating there’s still room for the market to grow.

Andrew Lis, director of economics and data analytics at GVR, noted the strong buyer response to recent rate cuts: “Typically, lower mortgage rates stimulate buyer interest, and the October sales figures suggest that demand is finally rebounding as buyers are attracted by the reduced borrowing costs. With four consecutive Bank of Canada rate cuts, we’re starting to see buyers re-enter the market.”

Inventory and New Listings Increase to Meet Buyer Demand

The number of new listings also climbed in October, with 5,452 detached, attached, and apartment properties hitting the market. This is a 16.9% increase compared to last year and 20% above the 10-year seasonal average, providing more options for buyers. Total inventory in Metro Vancouver reached 14,477 units, marking a 24.8% year-over-year increase and positioning it 26.2% above the long-term average.

The sales-to-active listings ratio, a key indicator of market health, hit 18.8% in October, edging close to a seller’s market threshold. When this ratio exceeds 20%, there’s typically upward pressure on prices, suggesting that Metro Vancouver’s market could see price growth in the attached and apartment segments if demand remains high.

Lis highlighted that while the market overall remains balanced, specific segments are showing signs of tightening. “We’re seeing attached and apartment segments shift toward a seller’s market, with the detached home segment not far behind,” Lis said.

Home Prices Show Modest Movement

Despite increased sales, price adjustments were modest in October. The MLS® Home Price Index benchmark for all residential properties in Metro Vancouver was $1,172,200—a slight 1.9% decrease from last year and 0.6% down from September.

When broken down by property type, the benchmark price for detached homes reached $2,002,900, reflecting a minor 0.3% year-over-year increase but a 1% dip from September. Apartment prices had a benchmark of $757,200, down 1.6% year-over-year and 0.6% month-over-month. Attached homes saw a benchmark price of $1,108,800, marking a 0.4% annual increase and a 0.9% rise from the previous month.

Outlook: A Growing Market with Room to Expand

While October’s numbers suggest a positive momentum shift in Metro Vancouver’s housing market, experts caution against drawing conclusions from a single month’s data. “The strong October sales figures are promising, but one month doesn’t define a trend,” said Lis.

With more potential rate cuts on the horizon and increasing inventory, Metro Vancouver’s housing market could see sustained demand growth if borrowing costs continue to ease. For buyers considering entering the market, current conditions may offer an opportune moment, especially in segments where inventory is increasing and prices remain relatively stable.