Welcome to your review of Metro Vancouver’s real estate market for October. Last month brought significant movement in Metro Vancouver’s real estate market. New listings continued to pour in, pushing total inventory to a level 26.2% above the 10-year average.
The inventory would have been even higher if not for the pick up in sales activity. Sales, which had been 26% below the 10-year average, recovered to just 5.5% below the average—a notable turnaround.
This rebound in sales has reversed the downward trend of the sales-to-active listings ratio, which had been declining for the past six months. This ratio is a measure of relative demand. The higher it is, the greater the relative demand. This ratio increased across all property types, signaling a potential stabilization—or even the bottoming out—of falling real estate prices. For example, townhomes have already seen a modest price increase compared to last month, as reflected in the table below.
Adding to the momentum, the Bank of Canada lowered the overnight rate by 0.50% late in October, bringing it to 3.75%. This rate cut is likely to encourage further sales activity in November, though the usual holiday slowdown is expected before a resurgence in the spring market.
Looking ahead, the outlook for future rate cuts is less certain following Donald Trump’s election as the next president of the United States. The market will need time to assess how this development impacts the U.S. economy and, by extension, Canada. This outlook would affect how bonds and thus, mortgages will be priced.
In the meantime, take a well-deserved break from the election drama and focus on what truly matters this November: Remembrance Day.
Lest we forget.
