Highlights of the August 2024 Market Report

• Detached home sales in August down 18% to July

• Active listing counts declined except for Richmond, Coquitlam and Port Moody

• Lowest number of monthly sales since January

• Buyers ready for more interest rate cuts

August 2024 was a month of taking a break! Sales and listings slowed as many enjoyed the summer weather before the busy fall market. After five months of rising listings, August saw a sharp decline, reducing available homes.

The Bank of Canada reduced its key interest rate for the third straight time, lowering costs for variable-rate mortgage holders. While a half-point cut was expected, there’s still room for more reductions, with rates likely to drop further by year-end. Meanwhile, the U.S. has hinted at a September rate cut.

Fixed-rate mortgages, linked to bond yields, may not see an immediate drop, but further rate cuts could bring relief. With falling rates, buyer interest is expected to pick up, and 2025 will see many five-year mortgages up for renewal.

August sales hit 1,903, down from 2,333 in July and 2,831 in April. This marks the fourth month of declining sales. Buyers seem to be waiting for further rate relief, and while sales are down 26% from the 10-year average, there’s a sense that demand is building.

The number of new listings also dropped for the fourth consecutive month, with 4,199 new listings in August, down from 7,229 in April. Inventory is now closer to a buyer’s market, and many areas have shifted from seller’s markets.

Active listings have dropped slightly, signalling that the peak for 2024 may have passed. With 13,812 listings at month’s end, buyer choice will likely shrink as we move through the rest of the year.

The political landscape in B.C. has also shifted, with the B.C. United leader stepping down. Housing will be a major focus in the upcoming election, but whether either party can effectively address supply issues remains to be seen. The NDP's efforts over the past eight years have had minimal impact, and the current regulatory environment continues to challenge future housing supply.

For the full report of any or all specific neighbourhoods, please contact me @ kit@kitbrown.ca or 778.828.9891.