Home sales across Metro Vancouver experienced a notable downturn in October, falling by more than 10 per cent compared to the same period last year. Meanwhile, the neighbouring Fraser Valley recorded a modest seasonal rebound, though the uptick did little to alter broader market conditions or shift the balance of power in favour of sellers.
According to data released by Greater Vancouver Realtors (GVR), a total of 2,024 residential properties changed hands across the region during the month. This figure represents a 10.2 per cent decline year over year and sits 22.5 per cent below the 10-year seasonal average for October, highlighting a cautious approach among prospective buyers and sellers navigating a complex economic and political landscape.
Andrew Lis, GVR chief economist and vice-president of data analytics, pointed to a combination of political events and shifting monetary policies as key drivers of the market slowdown.
“October came with a few suspenseful distractions for buyers and sellers alike, with a somewhat surprising Bank of Canada rate hike and a snap provincial election among them,” Lis said. “Between the onslaught of news coverage of the provincial and municipal elections, and the uncertainty surrounding where mortgage rates may be headed, it’s not entirely surprising that market participants took a step back in October to recalibrate.”
This cautious stance was reflected in inventory metrics as well. New listings declined 11.6 per cent year over year, dropping to 4,805 properties entering the market. Active listings similarly contracted, falling 4.3 per cent to 15,688 homes available for purchase. Despite these declines in fresh supply, overall inventory remained elevated, sitting 24 per cent above the 10-year seasonal average for this time of year.
Market absorption rates remained subdued across all major property types. The sales-to-active listings ratio for Metro Vancouver settled at 13.4 per cent overall. A closer examination of the sub-sectors reveals minor variations: detached homes recorded a sales-to-active listings ratio of 11.6 per cent, attached homes stood at 16.5 per cent, and apartments registered at 13.5 per cent. In real estate analytics, a ratio dipping persistently near or below 12 per cent typically indicates downward pressure on home prices, signalling a prolonged buyer’s market.
Metro Vancouver benchmark price falls 5.2 per cent
The persistent softness in demand has continued to exert downward pressure on property values across the region. The composite benchmark price for all residential properties in Metro Vancouver fell to $1,068,600 in October. This represents a 5.2 per cent decrease compared to the same month last year, as well as a 0.7 per cent decline from September levels.
Detached properties, which historically command the highest price points in the region, saw sales decline by 7.2 per cent year over year to 643 transactions. The benchmark price for a detached home in Metro Vancouver fell by seven per cent over the past year, resting at $1,775,200.
The apartment sector, which often serves as an entry point for first-time homebuyers and investors, experienced an even sharper contraction in volume. Apartment sales dropped 16.7 per cent to 892 transactions, while the benchmark price for a condominium declined 5.9 per cent year over year to $673,400.
Attached home sales, which include townhouses and row houses, demonstrated relative resilience compared to apartments and detached houses, falling by just 1.9 per cent to 468 sales. However, pricing in this category still felt the pinch, with the townhouse benchmark declining 5.5 per cent over the past year to $1,006,500.
Lis noted that prospective buyers currently find themselves navigating a difficult trade-off within the local real estate ecosystem. While falling property prices theoretically improve overall market affordability, the persistent reality of higher borrowing costs often neutralizes those gains, leaving monthly mortgage carrying costs elevated and straining household budgets.
Fraser Valley sales rise, but buyer’s market persists
While Metro Vancouver saw a broad contraction in transaction volumes, the neighbouring Fraser Valley experienced a different trajectory, marked by a seasonal lift in sales activity.
According to the Fraser Valley Real Estate Board (FVREB), October sales in the region increased by 14 per cent compared to September, reaching a total of 1,051 transactions. Despite this month-over-month recovery, sales volumes remained six per cent below the levels recorded in October of the previous year.
Regardless of the monthly bounce in transactions, the region remained firmly entrenched in a buyer’s market. The sales-to-active listings ratio for the Fraser Valley hovered at 11 per cent, pointing to ample choice for purchasers and limited pricing power for property owners.
Ishaq Ismail, chair of the FVREB, highlighted that single-family properties continued to anchor market activity during the month. “Detached homes continued to lead sales activity in October, significantly outpacing both townhomes and apartments,” Ismail observed.
Inventory trends in the Fraser Valley mirrored the broader regional pattern of declining supply paired with cautious participation. New listings fell 10 per cent from September to 2,551 properties, while active listings decreased by six per cent to 9,164 homes available on the market.
Pricing metrics in the Fraser Valley reflected a steady retreat from historic peaks. The composite benchmark price for the region dipped to $860,000, representing a 6.4 per cent decline compared to October of last year.
A breakdown by property type shows that detached home prices in the Fraser Valley fell 8.5 per cent annually, bringing the benchmark price for a single-family house to $1,293,800. Townhouse prices experienced a similar downward adjustment, declining 5.5 per cent to $742,300. Meanwhile, apartment prices in the region dropped 8.1 per cent year over year, settling at a benchmark of $460,800.
Rock Lefebvre, chief executive officer of the FVREB, emphasized the broader historical context of these price corrections. “Much of the pandemic-era price growth in the Fraser Valley has been erased,” Lefebvre stated. “That brings affordability to its best level in five years, creating a welcome opportunity for buyers.”
At the same time, Lefebvre echoed warnings similar to those voiced in Metro Vancouver, cautioning that persistent macroeconomic factors, particularly higher borrowing costs, could continue to complicate purchasing decisions for households entering the market in the closing months of the year.