December 5, 2023 Balanced Conditions Prevail In Metro Vancouver Housing Market

As we move into the holiday season, the Greater Vancouver real estate market offers an increased selection for home buyers, showcasing the largest inventory since 2021. According to the Real Estate Board of Greater Vancouver (REBGV), residential sales in the region saw a 4.7% increase from the previous year, with 1,702 homes sold in November 2023, although this is still a sleigh ride away (33% below) the historical average for the month.

STABILITY IN SIGHT: GREATER VANCOUVER'S HOUSING MARKET SHOWS SIGNS OF BUYER RELIEF AS PRICES EASE SLIGHTLY

The rise in active listings has been a key factor in providing buyers with more options, a trend noted by REBGV’s director of economics and data analytics, Andrew Lis. The market is experiencing balanced conditions due to this higher supply coupled with the seasonal slowdown in sales.

Newly listed properties on the Multiple Listing Service® (MLS®) in Metro Vancouver reached 3,369 this November, up by 9.8 percent from November 2022, yet still slightly below the 10-year average. The total number of properties listed for sale is 10,931, marking a 13.5% increase from last year and surpassing the 10-year average by 3.7%.

The sales-to-active listings ratio stands at 16.3% across all property types, with detached homes at 12.7%, attached homes at 19.8%, and apartments at 18.2%. Historically, a ratio below 12% indicates a potential for decreasing prices, while a ratio above 20% suggests increasing prices.

The market has witnessed relatively stable price trends following price increases earlier in the year. With the MLS® Home Price Index composite benchmark price at $1,185,100, there's a noted 4.9% increase from the previous year but a 1% decline from October 2023.

Overall, the Greater Vancouver housing market is showing signs of a more buyer-friendly environment as we approach the end of the year, with a slight easing of prices and an expectation of modestly falling mortgage rates in 2024.

View Stats Package

INVENTORY DIP MEETS COOLING SALES: FRASER VALLEY REAL ESTATE'S BALANCED CONDITIONS PERSIST THROUGH THE HOLIDAYS

Trends faced by the Fraser Valley over the previous four months have continued into November. Sales have continued to cool as we head into the holiday season, with both buyers and sellers on the sidelines, likely waiting for improved market conditions in the New Year.

In the month of November, The Fraser Valley Real Estate Board recorded 891 resales, resulting in an 8.1% decrease from the previous month. This month marks the second slowest November in the past decade, falling only behind the previous year, which recorded 783 transactions. Sales currently sit 30.5% below the 10-year seasonal average of 1,282 for the month of November. Market seasonality and high borrowing costs have prompted Buyers to exercise caution, a pattern that is anticipated to continue throughout the winter months.

The Fraser Valley witnessed 2,030 new listings in November, marking a 19.9% decrease from the previous month. This contributed to a total of 6,254 active listings for the month, reflecting a 5.0% decline from October 2023 but still standing 17.3% higher than the figures recorded in November 2022. Even with a reduction in overall inventory, the sales-to-listings ratio decreased from 15% in October to 14% in November.

Benchmark pricing has continued its downward trend for the fourth consecutive month, now sitting at $997,085. This represents a 1.1% decline from the previous month, primarily influenced by reduced townhomes and single-family home values. Conversely, condominiums experienced relative stability, with only a marginal 0.02% decrease in value. Overall benchmark pricing for all product types currently sits 16.1% below peak values seen in March 2022.

View the Stats Package

VICTORIA REAL ESTATE WITNESSES SEASONAL DECLINE IN SALES, INVENTORY LEVELS REMAIN STABLE

The Victoria Real Estate Board continued to observe a decline in sales in November, with a total of 394 properties sold. This reflected a 3.2% decrease compared to the previous month and a 2.6% decline year-over-year. Meanwhile, the number of total active listings in November saw a 4.1% decrease compared to the previous month, likely attributed to the decline in new listings influenced by market seasonality. Despite this, the total inventory remains 25.2% above November 2022.

Regarding pricing, the benchmark value for a condominium in the Victoria core currently sits at $568,400, which has decreased by 2.9% from the previous month but is 1.6% above what was seen last year. Like Metro Vancouver, market seasonality and uncertainty due to high borrowing costs have led buyers and sellers to remain on the sidelines, awaiting more favourable conditions before re-entering the market.

View the Stats Package