Welcome to the review of Metro Vancouver’s real estate market for August. I hope everyone enjoyed their Labour Day long weekend. Sales activity remained slow in August, coming in 26% below the 10-year seasonal average. However, new listings also slowed, so the total inventory remained relatively unchanged from last month, sitting at 20.8% above the 10-year average.
The sales-to-active listings ratio for all categories dropped again month over month. The sales-to-active listings ratio is a measure of supply and demand. Falling ratios indicate downward pressure on prices. As you can see from the table below, prices have been decreasing in all categories over the past few months, though the decline seems to be slowing compared to the previous month.
The Bank of Canada recently lowered its overnight rate by 0.25%, which means that banks’ variable-rate mortgages will also decrease by the same amount. In response, bond yields have fallen, and since fixed mortgage rates are closely tied to bond yields, fixed-rate mortgages may also decline in the near future.
Typically, September sees an uptick in sales activity, so this could help boost sales. However, the impact may be limited, as many are anticipating further rate cuts in the coming months and may decide to wait.
Have a great month!
