Vancouver Housing Market Update: August 2024

The Bank of Canada has dropped its policy rate for two consecutive months, but what does this mean for Vancouver’s housing market? If you’re keeping an eye on the detached market, particularly on Vancouver's East and West sides, you’ll want to pay attention. With inventory continuing to rise for the seventh straight month and prices starting to show some significant variances, this is your most comprehensive market update for August 2024.

Key Takeaway: Rising Inventory and Stagnant Sales

Despite back-to-back policy rate cuts, inventory levels across Vancouver’s detached market continue to rise, with sales not keeping up. This trend is putting downward pressure on prices, creating an environment ripe for buyers to take advantage of.

Inventory Trends: A Buyer’s Market

Rising Inventory Levels

Since December, inventory levels have been on a steady upward trend, particularly in Vancouver’s East and West sides. July data shows double-digit increases in total inventory across the region:

• Greater Vancouver: Up nearly 25%
• Fraser Valley: Up just under 20%
• Vancouver East: Up 25.8%
• Vancouver West: Up 11.3%

With more inventory to choose from, buyers have the upper hand in negotiations, and sellers need to be strategic in pricing their properties.

Price Movements: Modest Declines Across the Board

Stagnant Prices

When we look at the median price points from 2022 to now, there hasn’t been significant growth in the detached market. Prices have remained relatively stagnant across Vancouver, the Fraser Valley, and the rest of Greater Vancouver.

Month-to-Month Decline

Both Vancouver’s East and West sides saw a 6% decrease in prices from June to July 2024. For example, the average median price on Vancouver’s West Side dropped from $3.63 million in June to $3.4 million in July.

Sales Data: Buyers Remain Hesitant

Sluggish Sales

Despite the slight improvements in borrowing costs due to the recent rate cuts, buyers remain hesitant. Sales have not picked up in response to the increased inventory, keeping transaction levels below historical norms.

Days on Market

The days on market have seen some fluctuations, but properties are still selling within three weeks on average across Vancouver. However, the increase in inventory and the slower sales pace suggest that this trend may not hold for long.

Vancouver’s East Side vs. West Side: Winners and Losers

Vancouver’s West Side

• Market Conditions: Buyer’s market at 10% sales ratio
• Most Active Price Band: $2.5 to $2.75 million, with 25% sales ratio
• Opportunities: Best buys in Arbutus, McKenzie Heights, and South Granville, particularly in the $5.5 to $6 million range

Vancouver’s East Side

• Market Conditions: Strong balanced market at 16% sales ratio
• Most Active Price Band: $1.75 to $2 million, with 32% sales ratio
• Opportunities: Best buys between $2.75 and $3.5 million in neighborhoods like Collingwood and South Vancouver

Market Outlook: What to Expect Moving Forward

As we move into the fall, the market is expected to remain relatively soft. More rate cuts are likely needed before we see a significant uptick in buyer activity. September 4th is the next key date to watch for the Bank of Canada’s policy rate announcement, which could bring another rate drop.

August Forecast

August is likely to be a slow month, with potential further drops in prices and sales. Inventory is expected to remain steady, and historically, this period is not a peak time for real estate transactions, especially among families.

Conclusion: Navigating a Changing Market

The Vancouver housing market is in a state of flux, with rising inventory, stagnant prices, and hesitant buyers. Whether you’re looking to buy, sell, or invest, staying informed and strategic is key. With more rate cuts on the horizon and ongoing changes to tenancy laws and land use regulations, the landscape is set to evolve further in the coming months.

If you’re thinking about making a move, now is the time to get expert advice. Whether you’re buying, selling, or investing in Vancouver, I’m here to help you navigate these changes and make informed decisions.

Watch the Full Video

For a detailed analysis of the current market conditions, watch my latest YouTube video: Vancouver Housing Market Update | August 2024.