Market Update

METRO VANCOUVER HOUSING MARKET UPDATE | JULY 2024

2024-July-market update (GVR)

MARKET UPDATE July 2024: More selection not translating to more transactions

Source: GVR

Market update July 2024 GVR
Source: GVR

Newly listed properties registered on the Multiple Listing Service® (MLS®) rose nearly twenty per cent year over year in July, helping to sustain a healthy level of inventory in the Metro Vancouver1 housing market.

On the demand side, the Greater Vancouver REALTORS®2 (GVR) reports that residential sales in the region totalled 2,333 in July 2024, a 5 per cent decrease from the 2,455 sales recorded in July 2023. This was 17.6 per cent below the 10-year seasonal average (2,831). 

“The trend of buyers remaining hesitant, that began a few months ago, continued in the July data despite a fresh quarter percentage point cut to the Bank of Canada’s policy rate.”

Andrew Lis, GRV director of economics and data analytics

“With the recent half percentage point decline in the policy rate over the past few months, and with so much inventory to choose from, it’s a bit surprising transaction levels remain below historical norms as we enter the mid-point of summer.”

There were 5,597 detached, attached and apartment properties newly listed for sale on the MLS® in Metro Vancouver in July 2024. This represents a 20.4 per cent increase compared to the 4,649 properties listed in July 2023. This was also 12.7 per cent above the 10-year seasonal average (4,968).

The total number of properties currently listed for sale on the MLS® in Metro Vancouver is 14,326, a 39.1 per cent increase compared to July 2023 (10,301). This is also 21.5 per cent above the 10-year seasonal average (11,788).

Across all detached, attached and apartment property types, the sales-to-active listings ratio for July 2024 is 16.9 per cent. By property type, the ratio is 12.8 per cent for detached homes, 20.1 per cent for attached, and 19.3 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.

Source: GVR

“With the overall market experiencing balanced conditions, and with a healthy level of inventory not seen in quite a few years, price trends across all segments have leveled out with very modest declines occurring month over month,” Lis said.

“While it remains to be seen whether softening prices and improved borrowing costs will entice buyers to purchase as we head into the fall market, it’s worth noting that it can take a few months for improvements to borrowing costs to materialize into higher transaction levels.

“In this respect, it’s still early days, so we will watch the market for signs of transaction activity picking up in the months ahead.”

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,197,700. This represents a 0.8 per cent decrease over July 2023 and a 0.8 per cent decrease compared to June 2024.

Sales of detached homes in July 2024 reached 688, a 1 per cent increase from the 681 detached sales recorded in July 2023. The benchmark price for a detached home is $2,049,000. This represents a 2.1 per cent increase from July 2023 and a 0.6 per cent decrease compared to June 2024.

Sales of apartment homes reached 1,192 in July 2024, a 6.9 per cent decrease compared to the 1,281 sales in July 2023. The benchmark price of an apartment home is $768,200. This represents a 0.3 per cent decrease from July 2023 and a 0.7 per cent decrease compared to June 2024.

Attached home sales in July 2024 totalled 437, a 6.2 per cent decrease compared to the 466 sales in July 2023. The benchmark price of a townhouse is $1,124,700. This represents a 1.4 per cent increase from July 2023 and a 1.2 per cent decrease compared to June 2024.

1 Areas covered by Greater Vancouver REALTORS® include: Bowen Island, Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.

2 On February 12, 2024, The Real Estate Board of Greater Vancouver changed its organizational name to the Greater Vancouver REALTORS®.

CLICK HERE – Full GVR July 2024 Housing Market Update

Vancouver BC – August 2, 2024

Have a look at the GVR July 2024 Market Update Insights!
  • DOWNLOAD the GVR July 2024 Housing Market Update CLICK HERE
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July 24, 2024: Bank of Canada Lowers Policy Rate by 25 Basis Points to 4.5%

bank of canada rates

Today, the Bank of Canada reduced its target for the overnight rate to 4.5%, with the Bank Rate at 4.75% and the deposit rate at 4.5%.

Sources: CBC News, Bank of Canada

This move is part of the ongoing balance sheet normalization policy.

Global Economic Outlook:

  • The global economy is projected to grow annually by about 3% through 2026.
  • Inflation remains above central bank targets in most advanced economies but is expected to decrease gradually.
  • The US is experiencing an economic slowdown with moderated consumption growth and a resumed decline in inflation.
  • The euro area shows signs of growth after a weak 2023.
  • China’s economy is growing modestly, with strong exports balancing weak domestic demand.
  • Global financial conditions have eased with lower bond yields, buoyant equity prices, and robust corporate debt issuance.
  • The Canadian dollar remains stable, and oil prices are at levels projected in April’s Monetary Policy Report (MPR).

Canadian Economic Outlook:

  • Economic growth is estimated at about 1.5% for the first half of this year.
  • With a population growth of about 3%, the economy’s potential output is outpacing GDP growth, increasing excess supply.
  • Household spending, including consumer purchases and housing, remains weak.
  • Signs of slack in the labor market include a rise in the unemployment rate to 6.4% and slower employment growth.
  • Wage growth shows signs of moderation but remains high.

Forecast:

  • GDP growth is expected to increase in the second half of 2024 and through 2025, driven by stronger exports and a recovery in household spending and business investment.
  • Residential investment is projected to grow robustly.
  • New government limits on non-permanent resident admissions should slow population growth in 2025.
  • The Bank forecasts GDP growth of 1.2% in 2024, 2.1% in 2025, and 2.4% in 2026, with the economy gradually absorbing excess supply.

Inflation:

  • CPI inflation moderated to 2.7% in June, with broad inflationary pressures easing.
  • Core inflation measures have been below 3% for several months.
  • Shelter price inflation remains high, driven by rent and mortgage interest costs.
  • Inflation in wage-sensitive services, such as restaurants and personal care, remains elevated.
  • Core inflation is expected to slow to about 2.5% in the second half of 2024 and ease through 2025.
  • CPI inflation is anticipated to settle around the 2% target next year.

Monetary Policy:

  • The Bank has reduced the policy interest rate by 25 basis points to address ongoing excess supply and easing inflationary pressures.
  • Price pressures in some sectors, notably shelter and certain services, continue to hold inflation up.
  • The Governing Council will guide monetary policy decisions based on incoming information and its assessment of inflation outlook implications.
  • The Bank of Canada remains committed to restoring price stability for Canadians.

Information Note:
The next announcement for the overnight rate target is scheduled for September 4, 2024, and the next full economic and inflation outlook, including risk assessments, will be published in the MPR on October 23, 2024.

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