Vancouver home sales up, average price down

Despite several interest rate cuts in the past few months, the real estate market in the Lower Mainland remains sluggish.

In its latest report, Royal LePage says home sales rose by less than one per cent over the three-month period ending Sept. 30.

The company says the average sale price actually dropped on a year-over-year basis in Metro Vancouver.

It’s “down” to about $1.75 million.

“The Greater Vancouver market has remained relatively steady through the third quarter, with September showing similar patterns to the summer months. We didn’t see a significant bump in activity, and prices dipped just slightly compared to the second quarter,” said Randy Ryalls, the general manager of Royal LePage Sterling Realty. 

“The slow activity across all segments can largely be attributed to buyers sitting on the fence waiting for further interest rate reductions, without any real urgency to make a move just yet.”

The detached home segment in particular, Ryalls says, continues to experience weaker demand and remains firmly in “buyer territory.”

He says as interest rates continue to trend downward, they could have a more noticeable impact on the market.

“With inventory continuing to grow, this is an optimal environment for those who are ready to buy — prices are holding flat and there are more properties to choose from,” said Ryalls.

Royal LePage says the market won’t pick up until investors and first-time buyers decide to take the plunge.

Overall, the real estate company says Canada’s housing market is in “recovery mode” since the third straight interest rate cut.