Welcome to the July Metro Vancouver Real Estate Market Update. I hope you had a great BC Day! It seems sales activity picked up a bit in July. Instead of being 25% to 35% below the 10-year average, sales volume was only 13.9% below the 10-year average. However, a steady stream of new listings continues to keep total inventory more than 40% above the 10-year average—still a historically high level.
As you can see from the table below, the sales-to-active listings (STAL) ratio for detached homes and apartments rose slightly. The STAL ratio measures supply and demand in the real estate market: an increasing ratio means sales are growing faster than total inventory. While this is a positive sign, it’s starting from a very low base. Demand remains weak, and in fact, prices fell across all categories in July. It’s still very much a buyer’s market—especially for condos—given that another 3,000 units were completed in June.
The Bank of Canada held its overnight interest rate steady at the end of July. Current trading activity suggests the Bank is unlikely to cut rates at its next meeting, as it appears to be waiting for clearer signs of a cooling economy. The next interest rate decision is scheduled for September 17.
Enjoy the rest of the month.
