Balanced Market Continues but may shift...

With the arrival of the stats for October, we have seen a continuing balanced market... HOWEVER. There was a 22% increase in sales and 9% less active listings; which resulted in a 1% increase in the benchmark price across Greater Vancouver. This increase in price can be attributed to supply and demand concepts; if something is priced sharply, it will sell. 

Should this trend continue through the traditionally slower months of winter, we may find ourselves creeping more and more into a seller's market again as the current stock of homes is gradually decreasing and thus raising competition for buyers to find that great space! The Bank Of Canada has also aided in this trend by keeping the interest rates low and may even lower them again, which could cause another frenzy of buyers getting into the market with low rates. Low interest rates usually end up with higher home prices. Look at the 1970's for instance when rates were in double digits (which is the part people usually forget to mention when they are up and arms about housing prices). 

With this sudden flurry of transactions late in the year it has caused the months of inventory to drop from 5.8 months to 4.3. This is aiding in the market to return to a traditional normalization from the white hot market we had been experiencing. To keep in perspective the madness that was in 2017, the Greater Vancouver area was sitting at 3.0 months of inventory at some points in the year, causing multiple offers, subject free offers and other uncommon practices. 

With interest rates being low and a current trend of there being higher sales and less listings, it might be prudent for any first-time buyers to consider entering the market or at least getting the ducks in a row. Traditionally there is a spurt of market activity in the first couple weeks of the new year as many make the resolution to no longer rent. 

If you are looking for more in depth statistics, the entire package form the Real Estate Board of Greater Vancouver can be found here: