My comments:
Despite three recent interest rate cuts, sales activity remains relatively slow, and the impact on both the real estate market and the broader economy has been minimal. There is a possibility that central banks might announce another rate cut at the end of October, potentially a larger reduction of 50 basis points, so we’ll need to wait and see how that unfolds.
In September, we observed increased activity in properties at the more affordable end of the market, particularly one-bedroom condos priced between $500,000 and $700,000. Buyers are still securing good deals in this price range, with most sales occurring below the asking price unless the listing is intentionally priced under market value. However, we are also seeing the number of days on the market decreasing in several areas, such as downtown Vancouver, Burnaby South (Metrotown), and Brentwood. This could indicate a shift back towards a more balanced market, potentially giving sellers more leverage moving forward.
It’s worth noting that, while the market has felt slower this past year, prices compared to a year ago have not fluctuated significantly, with most changes being within a 1-2% minimal change. Our colleagues in the mortgage industry have also seen a noticeable uptick in inquiries recently. With another potential rate cut, we could see some shifts in the market, and it will be interesting to see how things develop.