Expect a buyers’ market to continue into the fall
Recent federal government announcements to raise the insured mortgage cap and expand 30-year amortizations combined with the Bank of Canada continued policy rate reductions1 will encourage buyers.
“Key measures include raising the insured mortgage limit to $1.5 million, which will expand access for Canadians in high-priced housing markets. That’s an increase from the current insured mortgage cap of $1 million.2
Additionally, the government said it is also expanding access to 30-year amortizations to all first-time home buyers in order to help reduce monthly payments.”
At the end of August 2024, the Bowen Island MLS® Home Price Index or Benchmark Price ($1,409,675) for the Last 12 Months (LTM) was -0.6 per cent compared to June 2023 and -0.3 per cent compared to the low of $1,414,483 in June 2024. Bowen was the only Metro Vancouver municipality where the LTM Benchmark Price decreased 2023-2024.
Other indicators tell a more encouraging story. The LTM Dollar Volume of Sales ($73,692,904) was up +14.9 per cent from 2023. Year-to-date (YtD) there were 44 sales of detached homes compared to 43 sales in 2023, and the 2024 YtD Dollar Volume of Sales ($55,906,904) was up over $15 million or +38.1 per cent from the same period in 2023.
New listings were up +31.3per cent YtD from 2023 and inventory on August 31, 2024, was 61 detached homes compared to 57 on June 30, 2024, which was the highest level since November 2014. The YtD Average number of Days on Market until a closed sale was 54 compared to 51 in 2023.
The LTM Average Sale Price ($1,674,139) was up 12.3 per cent, and the Average Number of Days on Market was 63, 18.9 per cent higher than 2023, but down 68 days in June 2024.
The highest sold price YtD for a detached home in July and August was $2,625,000 for a 3-bedroom, 4-bathroom, water view home on a 1.39-acre lot and the lowest sold price was $1,200,000 for a 3-bedroom, 2-bathroom, Panabode-style home on a 0.24 acres lot in Snug Cove. The LTM sale price averaged 94.3 per cent of list price compared to 96.5 per cent in 2023.
The relatively slow but stable market likely to continue into the fall while recent federal announcements and policy rate reductions will encourage increased activity in 2025.
1 https://www.canadianmortgagetrends.com/2024/08/the-big-banks-are-slashing-their-interest-rate-forecasts/
2 https://www.canadianmortgagetrends.com/2024/09/breaking-federal-government-raises-cmhc-insured-mortgage-cap-to-1-5-million/
* YoY - Year-over-year represents 12 months of activity
AUGUST 2024 DETACHED HOMES
SALE PRICE vs LIST PRICE
Low $1,200,000 $1,298,000
High $2,625,000 $2,698,000
Average Sale $2,028,000
Median Sale $2,190,000
STATS ON BOWEN
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