The Greater Vancouver real estate market remained steady in Q3 2024, with no significant changes in activity or prices, said Royal LePage Real Estate Services Ltd.
In a press release, the company said the aggregate price of a home in Greater Vancouver increased a modest 0.5 per cent to $1,233,900 year-over-year in the third quarter. On a quarterly basis, the aggregate price of a home in the region decreased 1.4 per cent. Aggregate prices are calculated using a weighted average of the median values of all housing types collected.
“The Greater Vancouver market has remained relatively steady through the third quarter, with September showing similar patterns to the summer months,” said Randy Ryalls, general manager, Royal LePage Sterling Realty.
Ryalls continued: “We didn’t see a significant bump in activity, and prices dipped just slightly compared to the second quarter. The slow activity across all segments can largely be attributed to buyers sitting on the fence waiting for further interest rate reductions, without any real urgency to make a move just yet.”
According to Royal LePage’s report, the median price of a single-family detached home in Greater Vancouver increased 0.4 per cent year-over-year to $1,754,500 in the third quarter, while the median price of a condominium increased 0.2 per cent to $768,600 during the same period.
The Bank of Canada has incrementally cut its overnight lending rate three times so far this year, going from 5 per cent to 4.25 per cent. The next interest rate announcement is scheduled for Oct. 23. The central bank’s overnight rate is a major factor in the mortgage rates offered to consumers by financial institutions.
Despite the recent rate reductions, Royal LePage said buyer demand remains weak nationally, especially among first-time homebuyers and small investors.
“First-time buyers, who are more sensitive to interest rates, are adopting a wait-and-see attitude,” said Phil Soper, Royal LePage's president and CEO. “With home prices essentially flat and interest rates steadily declining, they perceive no penalty in postponing their purchase.”
Soper continued: “Similarly, small investors, who typically buy condominiums to rent out and supply much of Canada’s rental housing, are also hesitant. Elevated rates have made the financials unworkable, with carrying costs surpassing rental income.”
Nationally, the aggregate home price rose a modest 1.6 per cent year-over-year in the third quarter to $815,500, and decreased 1.1 per cent over the previous quarter, said the company.
For the “typically-slower” fourth quarter, Royal LePage is forecasting a 3.0 per cent increase in the aggregate price of a home in Greater Vancouver compared to the same quarter last year. The company also expects the busy spring market to start earlier than usual in 2025.
“A pull-ahead of the spring market is expected on account of improved affordability thanks to new lending regulations and further anticipated rate cuts,” the press release stated.
The new regulations cited include 30-year amortizations for insured mortgages for some homebuyers, a higher price cap for insured mortgages, and the elimination of “stress tests” for some homeowners who switch lenders.
“These changes will have more impact on the early 2025 market than many anticipate,” said Soper. “Expect a material bump in activity.”
