Vancouver home sales to fall as Bank of Canada interest rate news looms

Sep 5 2023, 8:17 pm

Vancouver home sales are falling and will continue to fall through the end of the year as a Bank of Canada interest rate announcement looms.

RE/MAX has released its fall housing market outlook, which looks at real estate markets across Canada.

Not only has the average cost of a home in Greater Vancouver dropped, but sales have also fallen, and the forecast suggests that trend will continue.

For Greater Vancouver, the average residential sale price for a home was $1,258,179 between January and July of this year — a drop from the previous year, when the average price was $1,284,973.

Between January and July 2021, there were 2,954 sales. There was a staggering drop from these numbers in the same period the following year when there were 2,417 sales.

RE/MAX predicts that by the end of the year, the average price of a home will drop by approximately $50,000. Despite the drop, any newcomers looking to purchase a home will likely still be priced out without help from the bank of mom and dad.

By year’s end, RE/MAX anticipates that the average cost of a home in Greater Vancouver will be $1,233,015 and expects sales to have dropped by 5%.

If you’re in the market for a home in Greater Vancouver, how might the upcoming Bank of Canada interest rate announcement impact you?

Ratehub.ca co-CEO and president of CanWise mortgage lender James Laird shared his thoughts and expectations for the upcoming BoC announcement with Daily Hive.

“The Bank chose to raise at the last two announcements, so a raise is certainly still on the table,” he said. “Borrowers should be budgeting for a rate hike so that they are prepared if it does happen.”

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