Following a typically slow month for sales, August was trending 26% below the 10-year seasonal average as real estate activity remained subdued. In the Fraser Valley, sales were down even further at 30% from the 10-year average, the second slowest month in a decade for the region. The market remains in a holding pattern as sellers await the resurgence of demand after a quiet summer market. Across all property types, the sales-to-active listings ratio sits in balanced territory at 14.3%, with 9.6% for detached, 18% for attached, and 17.2% for condos. Listing activity has outpaced sales, with the total number of properties currently listed for sale 37% above August 2023, and 20.8% above the 10-year average. The steady supply of new listings and sluggish sales over the first half of the year, resulted in the total inventory of homes for sale rising to its highest level since 2019.

Active listing counts declined in every city except Richmond, Coquitlam, and Port Moody. Following a wave of inventory over the last 5 months, the absorption rate in August increased to 45%, the highest since March. Greater Vancouver has up to 7 months of inventory after being at 6 months and lower all year. Before August, only North Vancouver, New Westminster, Port Moody, Ladner, and Pitt Meadows remained seller’s markets, now showing declining sales. Vancouver’s Westside and Richmond have joined West Vancouver as buyer’s markets, driven by reduced sales and higher listing counts. Detached homes on Vancouver’s Westside may still see multiple offers, while Downtown condos struggle to generate interest, underscoring the differing dynamics across property types and areas.

The Bank of Canada dropped its rate 25bps for a 3rd consecutive time, bringing the prime rate from its peak of 7.2% to 6.45%. As fixed rates are based on the predictive bond market, the cuts have largely been priced in, so it isn't expected to see large decreases to fixed rates in the coming days. The downward pressure on rates is a relief nonetheless, with professional analysts calling for the BoC to drop at every meeting between now and January.

Most fixed rates that were funded in the 2nd half of 2023 were over 6%. With rates dropping to around 5% or below, and with variable rates projected to drop substantially over the next 12-24 months, there is a big opportunity in refinancing to break your mortgage and save money. What does that mean for you? Should you go variable or fixed? Take advantage of a limited time to save money by refinancing? It largely comes down to your personal financial situation. Contact me to speak with one of our mortgage experts.

According to a report from Equifax® Canada, mortgage delinquencies are on the rise, particularly for the younger generation. With the high cost of living and the unemployment rate reaching 6.4%, financial challenges are driving a rise in multigenerational living. While overall mortgage balance delinquency rates remained lower than pre-pandemic (0.16% vs. 0.17% in 2019), mortgage balance delinquency rates in Ontario hit their highest levels (0.16%) since 2014 (0.18%). Over 3,000 mortgages ($1.3B in balance) in Ontario were in severe delinquency at the end of Q2, up 66.8% when compared to Q2 2023.

British Columbia has set the maximum allowable rent increase for 2025 at 3%, matching the inflation rate, down from 3.5% in 2024. The cap is tied to the province’s consumer price index, ensuring that rent hikes stay fair while allowing landlords to manage rising costs. Tenants must receive three months’ notice before any increase, which is only permitted once annually. This cap does not apply to commercial or certain non-profit residential tenancies.

There was one exception in a precedent-setting ruling where a B.C. landlord was permitted to raise their tenants' rent by 23.5%, due to "unforeseeable" increased costs from a variable-rate mortgage. Many were puzzled by the ruling on account that the branch is in no position to assess financial planning, and that the regulation is out of touch with reality. Questions are now being asked in the real estate industry as to whether this will prompt more applications for rent increases beyond those allowed by the provincial government. 

“Set housing designs mean that people will be able to build more beautiful homes in their communities, faster than ever before.” – Housing Minister Ravi Kahlon

The B.C. government released a set of standardized designs for small-scale multi-unit dwellings. A key component of the Ministry’s mandate is to fast-track the construction and redevelopment of affordable homes for people with a range of incomes.