Vancouver’s real estate market is showing signs of cooling down, raising questions about potential ripple effects in the Greater Toronto Area. According to recent data, Vancouver home sales in October saw a significant 14.3 per cent drop compared to the same period last year. This decline, reported by Greater Vancouver Realtors, saw sales total 2,255 homes, falling 14.5 per cent below the 10-year seasonal average.
While new listings experienced a slight decrease of 0.3 per cent year-over-year, they remained 16.3 per cent above the 10-year average, totaling 5,438. This contributed to a 13.2 per cent increase in total listings compared to last year, reaching 16,393. The resulting sales-to-active listings ratio sits at 14.2 per cent. Historically, a ratio below 12 per cent has often put downward pressure on prices.
The composite benchmark price for all residential properties in Vancouver is now $1,132,500, reflecting a 0.8 per cent decrease from September. Detached homes are priced at a benchmark of $1,916,400, down 4.3 per cent from last year, while condos are at $718,900, a 5.1 per cent decrease year-over-year.
What does this mean for the GTA? While Vancouver and Toronto have distinct market dynamics, both are major Canadian real estate hubs. A cooling trend in one market can sometimes foreshadow shifts in the other. GTA real estate professionals will be closely watching Vancouver’s performance in the coming months to assess potential implications for Toronto’s market, particularly in the condo sector where Vancouver saw a steeper decline. Factors like interest rates and economic conditions will play a crucial role in determining whether Toronto experiences a similar slowdown.
