October 2023 Market Update & September Statistics
How's the Market?
September 2023 brought several noteworthy developments to Metro Vancouver's real estate market. Below this text you will find average sales price, days on market, and more for each area as well as a video expanding on the market statistics from September's sales. Here's a concise breakdown of the key takeaways:
1. Sales Activity Below Historical Norms: Sales of residential properties in September 2023 reached 1,926, marking a 13.2% increase from the previous year. However, it's important to put this into perspective; sales were a substantial 26.3% below the 10-year seasonal average and a staggering 25% below the 20-year average. In a nutshell, it was a weak month for sales.
2. New Listings on the Rise: In contrast to the sales figures, new listings showed promise, exceeding the long-term average by 5%. This increase in listings began to outpace sales, indicating potential downward pressure on sales. The equilibrium between supply and demand was shifting.
3. Limited Inventory Spurs Multiple Offers: Despite an increase in new listings, inventory remained constrained, leading to intermittent multiple-offer situations. However, it's essential to note that overall demand appeared to be somewhat subdued at this time. For sellers, competitive pricing remained a crucial factor.
4. Year-over-Year Sales Growth: Year-over-year, sales were up by a respectable 13%. Yet, this figure requires context, as it was measured against a notably slow September the previous year. Thus, this growth might not be as robust as it initially appears.
5. The Mortgage Rate Factor: The trajectory of mortgage rates will play a pivotal role in shaping the market, particularly as we approach the spring season. Fixed rates have surged significantly, and the stress test now pushes rates to 8.5%. This has made it challenging for potential buyers to qualify for mortgages, thus affecting demand and sales activity.
6. Keep a Close Eye on New Listings: To comprehend the market's future direction, close attention should be paid to whether new listings continue to outpace sales. If this trend persists, it could lead to a substantial increase in inventory, which might apply significant downward pressure on property prices.
In summary, Metro Vancouver's real estate market in September 2023 is undergoing a period of transition. Factors such as sales performance, the surge in new listings, tight inventory, and the impact of rising mortgage rates are influencing the market's dynamics.
For both buyers and sellers, understanding these market changes is vital to making informed decisions. As the market continues to evolve, the trajectory of mortgage rates and the balance between new listings and sales will be of paramount importance. In these fluid market conditions, the ability to adapt your strategy will be the key to success.
Intrigued by the sales-to-active listings ratio and its implications? Curious about the stability of interest rates? Stay informed and empowered with our expert guidance. If you're considering entering the market or simply seeking professional advice, don't hesitate to connect with me. 📞 Let's work together to transform your real estate aspirations into reality.