August 2023 - Vancouver Real Estate Market Update

Hi, it's Cari Mai and this is your Vancouver real estate market update for August 2023.

Last month's sales volumes  fell 22% from June 2023 and actually, month-over-month, the decline in sales far exceeded what's typical at this time of year. Over the past 10 years, sales usually dip around 9% lower in July than in June. This year however, the sales count in July is 17% below seasonal norms. To give you some context, at this time last year, the Bank of Canada interest rate hiked by a whole 1%, and that caught all buyers off-guard and that cooled market activity for a short while. So when you see certain statistics saying that July 2023 sales increased over double digits from last July, now you know why. So really, that number doesn't tell us a lot!

Despite lower sales volumes, home prices rose again across Greater Vancouver. The benchmark price for all homes types in the region is sitting at $1,210,700. This is a 0.5% increase from last July and 0.6% increase from June 2023. 

What we're seeing happen here is basic economics - you have high demand and low inventory which is essentially pushing up home prices. 

The total number of homes for sale on a month-over-month basis was higher for each home type in July with condo listings increasing the most by 4% followed by detached homes, and then townhouses. On a year-over-year basis, the total number of homes for sale actually dipped 4% from last July.

As a Realtor in Vancouver, we obviously see more  of what happens on the home buyer and home seller activity level while conducting showings and during negotiations. Open house activity is still quite active for homes priced at market price or slightly below market price. One thing I did notice is the uptick of Canadian non-residents who are at these open houses with phone numbers not from the local the area. I've noticed quite a few American phone numbers, some from  Europe, Asia, Ontario, Vancouver Island, all looking to buy a home, have it rented out until they are ready to move their family to Vancouver from wherever they live now. How do I know? I get called so they can be let in to view the home.

Despite what the fear-mongers are saying in the media about the real estate prices crashing, people are still coming to Greater Vancouver and buyer demand is still high. They're coming here for the relatively mild weather that we have here ( we don't get any crazy heat waves, hail and ice storms, monsoons, etc that the rest of world gets), safety (gun violence isn't a concern in the city), education (we have a great public school system and university education doesn't cost an arm and a leg when compared with the US), and lifestyle (where else in the world can you go to the beach to watch the sunset AND go to the mountains and snowboard in the same day?). Monthly rent is higher than ever and renters will pay for the privilege to live here. For this reason, real estate prices may decrease for less attractive cities to live in, but not for Vancouver which attracts increasing numbers of immigrants and migrants annually.

I hope that gives you a glimpse into Vancouver's real estate market this month!
Feel free to DM me or leave a comment below if you have any questions about what you just heard. 

Thanks for tuning in!