North Palms at English Bay-Kyle Pearce in vancouver/ Photo Source: Sebastian Albrecht.
[Vancouver] There were 723 sales in Vancouver in July 2023. This was an impressive 27% higher than the sales seen in July 2022...and could otherwise be cited as an indication of just how hot Vancouver real estate has been lately.
This, until you remember that last July was when the Bank of Canada raised interest rates by 1% and we saw a very rapid slowdown in sales activity for the rest of the year.
Looking more closely, we also see that sales were -15% from the previous month and also -16% from the 10-year average. By these measures, sales activity has clearly cooled significantly from the torrid pace of recent months.
New listings fell to 1,525, down 10.8% from last month but up +27% from a year ago and essentially flat compared to the 10-year average (+0.4%). Total active listings rose to 3,403 but this was up slightly last month (+1.2%) and down (-12.6%) compared to last year.
We can see that all activity levels have tapered off for summer. It remains to be seen if this pause in market activity is related to a typical summer OR if it has more to do with the Bank of Canada surprising the market with a few more rate hikes.
Despite the less frenetic pace of the market, prices continued to rise throughout Vancouver and in nearly every housing type. The biggest jump was for East Vancouver townhouses, which rose to $1,126,300 (+1.57%)...but the strongest market continues to be for detached homes on both the Eastside and Westside of Vancouver.
I believe we will see another quiet month in August. It's likely that both sales and listings will be lower again before activity picks up. If you are thinking of selling, September and October are probably optimal months to list. And if you are looking to buy now is probably a better time to be active without the increased competition that is likely to come once Labor Day is behind us.
About the Author
Sebastian Albrecht is an agent committed to creating lasting value for his clients. He focuses on cultivating lifelong relationships built on a foundation of experience, market knowledge, and trust.
