Vancouver areaon track to see home prices stabilize amid higher borrowing costs: real estate board

The Real Estate Board of Greater Vancouver sayshigher borrowing costs combined with seasonal patterns are puttingthe housing market on track for slowing sales and pricestabilization.

The board's outlook is being informed by August sales, whichtotalled 2,296, 13.8 per cent below the 10-year seasonal average.

Compared with a year earlier, August sales jumped more than 21per cent.

There were 3,943 new listings last month, a roughly 18 per centincrease from a year earlier, but new listings remained 5.3 per centbelow the 10-year seasonal average.

The composite benchmark price for the Vancouver area hit $1,208,400,a 2.5 per cent increase from August 2022 and a less than one percent decrease from July.

Composite benchmark prices are considered to be a typical sale price for homes in similar areas, whereas average home prices are the total dollar sales divided bythe total amount of sales.

The board's director of economics and data analytics says thenumbers are proof that the Vancouver area's housing market bucked manypundits' predictions of a major slowdown, but the market istempering.

"It's a bit of a tortoise and hare story this year, with salesstarting the year slowly while prices increased due to low inventorylevels,"Andrew Lis said in a news release on Tuesday.

"As fall approaches, sales have caught up with the price gains,but both metrics are now slowing to a pace that is more in-line withhistorical seasonal patterns, and with what one might expect giventhat borrowing costs are where they are."

The areas and municipalities covered by the REBGVare Bowen Island, Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, the Sunshine Coast, Vancouver, West Vancouverand Whistler.