Greater Vancouver continued to see a market well below historical averages this past October, with a 45.5% decrease in residential home sales from October 2021.

Last month was also 33.3% below the 10-year October sales average.

With inflation and rising interest rates putting pressure on homebuyers, sales remain low when compared with record level highs last spring.

When it comes to year-over-year declines, this downward trend will continue in coming months as the area adjusts to a new market cycle, according to Craig Munn, vice president, communications at the Real Estate Board of Greater Vancouver (REBGV).

“It’s certainly year-over-year declines, that one-year comparison, where we are going to see that for the foreseeable future. In terms of month-over-month, it’ll really depend,” he said.

Compared with September, October saw an increase of 12.8% in residential home sales from the 1,687 homes sold in September 2022, according to the REBGV.

The board also noted that the total number of homes currently listed for sale in the region is up 22.6% when compared with October 2021. In addition, Greater Vancouver saw a 1.2% decrease compared with September 2022.

“Recent years have been characterized by a frenetic pace of sales amplified by scarce listings on the market to choose from,” said Andrew Lis, REBGV’s director, economics and data analytics in a new release.

“Today’s market cycle is a marked departure, with a slower pace of sales and more selection to choose from.”

As the region moves into the holiday seasons, monthly sales averages will go down as Vancouverites look to wrap up the year, Munn says.

Sales of detached homes and apartments both decreased from October 2021, but saw little change when compared with last month.

“We continue to see that in the townhome and apartment markets, the supply is tighter, and there’s a little bit more demand in those markets. The detached market is the one area that’s much more firmly in buyer’s market territory,” Munn said.

The sales-to-active listings ratio for all property types in October 2022 was 19.3%, according to the REBGV. When broken down by property type, the ratio for detached homes is 14.3%, 21.6% for townhomes and 23.2% for apartments.

When the ratio dips below 12% for a sustained period of time, downward pressure on home prices occurs, while there is an upward pressure when the ratio surpasses 20%, according to the REBGV.

Munn says that Greater Vancouver is in a new market today and there are different factors that will influence homebuyers and sellers.

“It’s really just important for [buyers and sellers] to do their homework and understand what these changes mean for them, whether it’s the changing mortgage environment or the inflationary pressures going on or or new supply coming on,” Munn said.

October Housing Market Cycle Continues to See Historical Lows by Claire Wilson | BIV