Vancouver real estate market impact of June rate cut appears to be muted
Vancouver real estate market trends. According to the Greater Vancouver Realtors, real estate sales activity in July 2024 showed little impact from the June and July 24 rate cuts.
The number of homes sold in July 2024 was 2,333, 5% fewer than in July 2023, and likely down from the 2,418 homes sold in June last month.
This is said to be 17.6% below the 10-year seasonal average.
The number of listings on the market is up 20% year-over-year, continuing the trend of more listings and fewer sales.
The Fed cut rates once more at the end of July, on July 24, so we’ll have to wait and see what else August has to offer.
For reference, the current (August 2024) benchmark rate is 4.5% after dropping half a point in June and July.
Vancouver real estate listings
There were 5,597 Vancouver real estate homes for sale in July 2024, up from 4,649 in July 2024 last year.
There were 14,326 Vancouver real estate homes for sale in the Multiple Listing System (MLS), up 39.1% from 10,301 in July of last year.
As a result of the increase in listings, Vancouver real estate home prices are also seeing a slight decline.
Here’s a look at the number of sales and prices by home type
There were 688 homes sold in July 2024, up 1% from 681 homes sold in July 2023.
The benchmark price for a house is $2,049,000, up 2.1% from July 2023 and down 0.6% from June 2024.
Condo sales were 1,192 units in July 2024, down 6.9% from 1,281 units in July 2023.
The benchmark price for condos is $768,200, a decrease of 0.3% from July 2023 and a decrease of 0.7% from June 2024.
There were 437 townhouse sales in July 2024, down 6.2% from 466 in July 2023.
The benchmark price for townhouses is $1,124,700, an increase of 1.4% from July 2023 and a decrease of 1.2% from June 2024.
As we discussed earlier, the Vancouver real estate market to date appears to have been less impacted by the two rate cuts.
I think it could be because there is a wait-and-see attitude from the buyer’s point of view, thinking that there will be more interest rate cuts in the future, or it could be because even if the interest rate has gone down, it is still a burdensome amount to take out a loan and buy a house.
With the US and elsewhere gradually signaling lower interest rates, it’s worth keeping an eye on what the future holds for the Vancouver real estate market.
You can read more about the above in the links below.
https://www.gvrealtors.ca/market-watch/monthly-market-report/july-2024.html