Hi, it's Cari Mai and this is your Vancouver real estate market update for September 2023.
Home sales have been falling for the 3rd consecutive month in August and inventory shrunk for the first time in 6 months. The cost of borrowing money was at its highest levels in 10 years last month which made market trends predictable. We're seeing price gains cooling and sales slowing. Despite media outlets speculating a major slowdown earlier in the year, sales numbers remain strong relative to August 2022 with a 21.4% increase in home sales. The seasonal drop in sales volume between July and August usually declines around 9%. This year, we saw a 6% drop in sales between July and August!
The benchmark price for all homes types across Greater Vancouver is sitting at $1,208,400. This is a 2.5% increase from last August and 0.2% decrease in price from July 2023.
The Canadian economy saw weaker growth, which is needed to relieve price pressures. The economy saw weaker spending, a decline in housing activity, and impacts from wildfires in various areas across the country. We saw the Bank of Canada hold their key interest rate at 5% earlier this September. It definitely is not guaranteed that there won't be future rate hikes. The next rate announcement is on October 25, 2023.
The Fall market is upon us and we're already seeing more homes come on the market for sale when compared with August. Buyers are back from vacation and this year, they're taking their time to look around before making a decision. The winners in the current housing market are down sizers who sold a bigger home with a good amount of equity and having the ability to make their next purchase in cash.
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.