August 15, 2024 Greater Vancouver August 2024 Presale Pulse

August 2024 Greater Vancouver Real Estate Market Insights

Welcome to the August 2024 episode of the Presale Pulse, a real estate show brought to you by hosts Suzana Goncalves and Brittany Reimer. Watch the video to understand the latest macroeconomics, presale, and resale trends over the last 30 days affecting the local real estate market across Metro Vancouver and the Fraser Valley.

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Market Cooling as Buyers Await Further Rate Cuts

In July, the real estate market experienced a cooling trend, reflecting broader economic slowdowns. Inflation showed signs of easing, with the CPI dropping to 2.7% in June, supporting recent interest rate cuts to 4.5%. However, market response remained cautious, with modest presale activity and a 25% absorption rate across eight project launches. The resale market also slowed, with sales decreasing by 3.5% from June and active listings rising, signalling a shift towards a buyer's market. Despite a slight 0.8% decrease in the benchmark price to $1,197,700, sellers remain firm, anticipating further rate cuts and market revitalization later in the year.

Presale Market Sees Modest Activity Amid Economic Uncertainty

The presale market saw modest activity in July, with eight new projects introducing over 830 units to the market. While this aligns with the seasonal average, sales remained cautious, resulting in a 25% absorption rate. This comes despite the Bank of Canada's recent interest rate cuts, which have yet to significantly boost buyer confidence. The majority of sales came from a few key projects, but overall, developers continue to delay launches, waiting for more favourable market conditions. With buyers and sellers both holding back, the presale market is expected to remain quiet until a clearer economic picture emerges.

Resale Market Softens as Inventory Grows and Sales Slow

The resale market experienced a slowdown in July, with sales dropping 3.5% from the previous month to just over 2,300 transactions. This decline is typical for the summer but was sharper than expected, leaving sales 21.5% below the 10-year seasonal average. Meanwhile, active listings increased by 1%, pushing the market closer to buyer-friendly conditions. Despite this, prices only softened slightly, decreasing the benchmark price by 0.8% to $1,197,700. Sellers remain firm on pricing, anticipating future rate cuts and a potential market rebound later in the year.

Presale Projects mentioned in this episode:

M6 - Jim Pattison Developments
SCOUT - Heinrich’s Developments
Level - Jayen Properties
BridgeCity - Oviedo Development

Links mentioned in this episode:

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