It doesn’t seem like lower interest rates are doing much to increase home sales in the Lower Mainland.
Greater Vancouver Realtors are out with their monthly report, showing sales were slightly down in September compared to the same time last year.
“Residential sales in the region totalled 1,852 in September 2024, a 3.8 per cent decrease from the 1,926 sales recorded in September 2023,” GVR said in a release Wednesday.
These findings come after repeated promises from the sector that things would pick up after consecutive interest rate cuts.
Home sales in the region are currently down 25 per cent compared to the 10-year average.
“The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 14,932, a 31.2 per cent increase compared to September 2023 (11,382). This is 24.2 per cent above the 10-year seasonal average (12,027),” GVR added.
The apparent lack of demand is appearing to drive down prices, which are also down slightly compared to last year.
“The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,179,700. This represents a 1.8 per cent decrease over September 2023 and a 1.4 per cent decrease compared to August 2024.”
However, the sector remains optimistic that things will pick up by the end of the year.
“With some buyers choosing to stay on the sidelines, inventory levels have sustained the healthy gains achieved over the course of this year, providing much more selection to anyone searching for a home,” Andrew Lis, GVR’s director of economics and data analytics said.
“With all this choice available, prices have trended sideways for the past few months. The September figures, however, are now showing modest declines across all segments on a month over month basis. This downward pressure on prices is a result of sales not keeping pace with the number of newly listed properties coming to market, which has now put the overall market on the cusp of a buyers’ market. With two more policy rate decisions to go this year, and all signs pointing to further reductions, it’s not inconceivable that demand may still pick up later this fall should buyers step off the sidelines,” Lis shared.