September 2023 Market Conditions in Greater Vancouver: Stalled Home Prices and Slower Sales Amid Rising Listings
The Greater Vancouver housing market experienced a slowdown in September as month-over-month price gains stalled. The Real Estate Board of Greater Vancouver (REBGV) reported 1,926 home sales, a 13.2% increase YoY but 26.3% below the 10-year seasonal average. Rising mortgage rates contributed to homeowner reluctance in listing their properties. September 2023 saw a 28.4% increase in new residential property listings compared to the previous year. The total number of homes listed for sale reached 11,382, up 9.2% from September 2022. Despite these shifts, the composite benchmark price for all residential properties remains at $1,203,300, reflecting a 4.4% YoY increase but a 0.4% decrease from August 2023.
Conclusions to Draw from the Data:
- Slowed Price Growth: The housing market in Greater Vancouver experienced a slowdown in the rate of price growth during September. This suggests that the rapid price increases seen earlier in the year have tapered off.
- Sales Activity: While there was a year-over-year increase in home sales (13.2%), the number of sales fell significantly below the 10-year seasonal average by 26.3%. This indicates that while demand remains compared to the previous year, it has cooled relative to historical averages.
- Impact of Rising Mortgage Rates: Rising mortgage rates have led to homeowner reluctance in listing their properties. This could be because potential sellers are concerned about higher borrowing costs for their next home purchase.
- Increased Listings: September 2023 witnessed a notable increase (28.4%) in new residential property listings compared to the same month in the previous year. This suggests that more homeowners were willing to put their properties on the market.
- Higher Total Listings: The total number of homes listed for sale in September 2023 increased by 9.2% compared to September 2022, indicating a greater supply of properties available for potential buyers.
- Stable Benchmark Price: Despite the changes in sales activity and listings, the composite benchmark price for all residential properties remained relatively stable at $1,203,300. This represents a moderate year-over-year increase (4.4%) but a slight decrease (0.4%) from the previous month, August 2023.
Overall, these observations suggest a market in transition, with a slowdown in price growth, changing sales dynamics, and increased inventory levels. The stability in benchmark prices indicates that while the market is adjusting, it has not experienced a significant downturn in property values.
