Buyers' market with highest inventory in a decade
At the end of August 2024, the Bowen Island MLS® Home Price Index or Benchmark Price LTM (Last Twelve Months) was $1,406,933, down -0.7 per cent compared to September 2023 and down -0.2 per cent compared to August 2024. The LTM Benchmark Price ranged from a low of -0.7 per cent (Bowen) to a high of +7.3 per cent (Burnaby) in Metro Vancouver.
Other indicators tell a more encouraging story. The LTM Dollar Volume of Pending and Closed Sales ($74,766,404) was up +33.6 per cent from 2023. Year-to-Date (YtD) there were 39 sales of detached homes compared to 32 sales in 2023, and the 2024 YtD Dollar Volume of Sales ($61,796,404) was up over $12 million or +25.3 per cent from the same period in 2023. The Dollar Volume of Pending1 and Closed2 Sales in September was $7,789,500, up $4.8 million from August.
New listings were up +33.3 per cent YtD from 2023 and inventory on September 30, 2024, was 67 detached homes compared to 61 on August 31, 2024, the highest level in a decade. The YtD Average Number of Days on Market until a closed or pending sale was 58 compared to 47 in 2023.
The LTM Average Sale Price ($1,625,356) was up $113,000 or 7.5 per cent compared to 2023. Year-to-Date the Average Number of Days on Market was 58, with a low of 3 days for 6-year-old, 3-bedroom, 3-bathroom duplex listed at $975,000 and a high of 247 days for a 47-year-old, 2-bedroom, 1 bathroom listed at $1,049,000.
The highest sold price in September was $3,050,000 for a 2-bedroom, 2-bathroom, waterfront view home on a 0.26-acre lot and the lowest sold price was $742,500 for a 2-bedroom, 1-bathroom, Panabode-style home on a 0.26-acre lot in Bluewater. September sold prices averaged -5.8 per cent below list with a range from -0.1 to -10.3 per cent below list. Sales of vacant land were stagnant, with no sales in September. The Last Twelve Months ending September 30, 2024, saw $3.920 million in vacant land sales compared to $4.934 million in 2023 and $10.895 million in 2022.
The Bank of Canada has policy rate announcements scheduled for October 23 and December 11, with pundits suggesting rate cuts as high as 0.5 per cent in both October and December. “Meantime, inflation pressures should continue to slow and could even drop closer to the lower end of BoC’s 1%-3% target in 2025. We expect that will prompt faster and larger interest rate cuts from the BoC, by 50 bps in October and December even if the Fed reverts to more “normal” 25 bps reductions and fewer cuts overall.”3
With the MLS® Home Price Index or Benchmark Price down YoY and the highest inventory levels in a decade it remains a buyers’ market, anticipated BoC lower rates should encourage buyer activity and a more active market in 2025.
Other indicators tell a more encouraging story. The LTM Dollar Volume of Pending and Closed Sales ($74,766,404) was up +33.6 per cent from 2023. Year-to-Date (YtD) there were 39 sales of detached homes compared to 32 sales in 2023, and the 2024 YtD Dollar Volume of Sales ($61,796,404) was up over $12 million or +25.3 per cent from the same period in 2023. The Dollar Volume of Pending1 and Closed2 Sales in September was $7,789,500, up $4.8 million from August.
New listings were up +33.3 per cent YtD from 2023 and inventory on September 30, 2024, was 67 detached homes compared to 61 on August 31, 2024, the highest level in a decade. The YtD Average Number of Days on Market until a closed or pending sale was 58 compared to 47 in 2023.
The LTM Average Sale Price ($1,625,356) was up $113,000 or 7.5 per cent compared to 2023. Year-to-Date the Average Number of Days on Market was 58, with a low of 3 days for 6-year-old, 3-bedroom, 3-bathroom duplex listed at $975,000 and a high of 247 days for a 47-year-old, 2-bedroom, 1 bathroom listed at $1,049,000.
The highest sold price in September was $3,050,000 for a 2-bedroom, 2-bathroom, waterfront view home on a 0.26-acre lot and the lowest sold price was $742,500 for a 2-bedroom, 1-bathroom, Panabode-style home on a 0.26-acre lot in Bluewater. September sold prices averaged -5.8 per cent below list with a range from -0.1 to -10.3 per cent below list. Sales of vacant land were stagnant, with no sales in September. The Last Twelve Months ending September 30, 2024, saw $3.920 million in vacant land sales compared to $4.934 million in 2023 and $10.895 million in 2022.
The Bank of Canada has policy rate announcements scheduled for October 23 and December 11, with pundits suggesting rate cuts as high as 0.5 per cent in both October and December. “Meantime, inflation pressures should continue to slow and could even drop closer to the lower end of BoC’s 1%-3% target in 2025. We expect that will prompt faster and larger interest rate cuts from the BoC, by 50 bps in October and December even if the Fed reverts to more “normal” 25 bps reductions and fewer cuts overall.”3
With the MLS® Home Price Index or Benchmark Price down YoY and the highest inventory levels in a decade it remains a buyers’ market, anticipated BoC lower rates should encourage buyer activity and a more active market in 2025.
1 Pending: Covers the time from when subjects have been removed from a conditional offer, or an unconditional offer has been accepted.
2 Closed: When the title has been transferred and the property now has a new owner.
3 https://thoughtleadership.rbc.com/dont-stop-me-now-rate-cuts-to-multiply-from-the-boc-ecb-and-the-boe/
2 Closed: When the title has been transferred and the property now has a new owner.
3 https://thoughtleadership.rbc.com/dont-stop-me-now-rate-cuts-to-multiply-from-the-boc-ecb-and-the-boe/
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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