October saw a significant rebound in the Canadian real estate market, with home sales rising 30% compared to last year. This surge was felt across Canada, including in Vancouver, where the Lower Mainland saw double-digit growth. This shift came as a surprise, especially as the Bank of Canada continues to lower its interest rates. With mortgage rates now more attractive, buyers who had been sitting on the sidelines are feeling more confident to re-enter the market.
The Bank of Canada has cut rates four times since June, and the latest reduction in October seems to have encouraged more buyers to take action. While the market is recovering, it's happening gradually, with fewer buyers rushing in like we saw during the pandemic. Instead, many are waiting for the right property to come up, as seen by the surge in new listings in September. This increase in supply has helped boost activity, giving buyers more options to choose from.
Looking ahead, the market’s momentum will depend on the number of new listings that come to market. In Vancouver, we’ve already seen more listings this year compared to last, and prices are starting to stabilize. Sellers are gaining confidence as the market picks up, and buyers are feeling more comfortable with current prices. With mortgage rates expected to remain lower, this could set the stage for an even stronger real estate market in 2025. If you’re considering buying or selling, now might be a great time to take advantage of this shift.