Canada: Greater Vancouver Home Sales Decline in March, While Toronto Sees Increase in Prices

Greater Vancouver reports a 4.7% decrease in home sales compared to last year, while Greater Toronto experiences higher home prices as households adapt to elevated interest rates.

In the latest real estate news, the Greater Vancouver real estate board has reported a decrease in the number of homes changing hands in March compared to the previous year. Total sales were nearly one-third lower than the 10-year average, with 2,415 home sales recorded in the region last month, a 4.7 per cent decrease from March 2023. The total number of Metro Vancouver homes listed for sale rose 22.5 per cent year-over-year to 10,552, which is 6.3 per cent above the 10-year seasonal average. Additionally, there were 5,002 detached, attached, and apartment properties newly available in March, a 15.9 per cent increase compared to the previous year.

The composite benchmark home price in Greater Vancouver was $1,196,800, up 4.5 per cent from a year ago and a 1.1 per cent increase from February. Meanwhile, in Greater Toronto, home prices ticked higher in March, with sales falling by 4.5 per cent compared to the previous year. Competition among prospective homebuyers drove average home prices up by 1.3 per cent year-over-year to $1,121,615, with 6,560 homes sold in March, down from 6,868 a year earlier.

According to the Toronto Regional Real Estate Board (TRREB), sales rose by 11.2 per cent annually during the first quarter, with new listings up by 18.3 per cent during the period. TRREB analyst Mercer noted that households in Greater Toronto are beginning to accept higher payments amid elevated interest rates. Mercer sees demand continuing to trend higher, with the potential for a rate cut by the Bank of Canada to act as a catalyst for further market momentum.

Mercer also highlighted the potential rise in demand for condo units alongside any reductions in borrowing costs, noting that the condominium apartment segment of the market is often seen as an important entry point into homeownership for new buyers. This could put upward pressure on condominium apartment prices in the near future.

The real estate market in both Greater Vancouver and Greater Toronto is experiencing shifts in sales and prices, with potential for further changes depending on market conditions and external factors such as interest rates.