April 19, 2024 Greater Vancouver April 2024 Presale Pulse

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April 2024 Greater Vancouver Real Estate Market Insights

Welcome to the April 2024 episode of the Presale Pulse, a real estate show brought to you by hosts Suzana Goncalves and Brittany Reimer. Watch the video to understand the latest macroeconomics, presale, and resale trends over the last 30 days affecting the local real estate market across Metro Vancouver and the Fraser Valley. 

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The Bank of Canada's decision to hold interest rates steady at 5.00% contributed to the overall sentiment of the Greater Vancouver real estate market, with ongoing speculation about potential rate cuts later in the year. Despite earlier expectations for rate decreases, fueled by concerns over economic growth, recent announcements from the Bank of Canada suggested a cautious approach, waiting for sustained data to support any adjustments. Factors such as rising inflation, driven in part by elevated gas prices and shelter costs, added complexity to the market outlook. While there remains optimism for rate cuts, especially given the contrasting dynamics between the Canadian and US economies, uncertainties persist, highlighting the need for careful assessment of market assumptions and predictions. The upcoming BOC meeting scheduled for June 5 is anticipated to provide further insights into potential monetary policy shifts, which could impact the presale market dynamics moving forward.

Spring Surge in the March Presale Market 

The Greater Vancouver presale market experienced significant activity in March, marking the beginning of the Spring season, traditionally the busiest period for presale developments. Eleven projects were launched, releasing 1,230 units onto the market, a substantial increase compared to March 2023, which saw only three projects and approximately 500 units introduced. Sales absorptions also surged, rising from about 150 sales to over 400, with a same-month absorption rate of 27%. Despite this uptick, the absorption rate fell below ideal levels, indicating increasing competition. Nevertheless, some projects, like Ledgeview II in Surrey City Centre, saw early success, achieving over 180 deals within the first month, representing approximately 60% of their inventory. Key factors driving sales included attractive price points, such as $890 per square foot (PPSF), coupled with favourable deposit terms. In April, the market anticipates ten project launches, introducing nearly 2,000 units, primarily focused on concrete developments south of the Fraser River, such as Parksville 96 and Parkway. This surge in inventory suggests a cautious optimism in the market, particularly amidst expectations of potential rate cuts in the latter part of the year, fostering a growing interest among buyers.

March Resale Market Sees an Uptick in Activity 

In March, the Greater Vancouver resale market showed signs of increased activity, with a total of 2,415 sales recorded, marking a notable uptick compared to the previous month. However, despite this improvement, sales remained 4.7% lower than the same period last year. While these figures indicate short-term progress, a deeper analysis reveals that the market still lags behind historical averages, standing at 31% below the ten-year average. Conversely, the number of active listings surged, reaching 10,552, representing a 22.5% increase from the previous year and exceeding the 10-year seasonal average by 6%. This influx of listings suggests a potential shift towards a buyer's market, although the situation is nuanced. While the overall sales-to-listings ratio sits at 24%, indicating a balanced market, specific segments like townhomes and condominiums still demonstrate characteristics of a seller's market, with ratios exceeding 30%. Despite these fluctuations, benchmark prices continued to rise steadily, increasing by 1.1% compared to the previous month, with a 4.5% appreciation over the past year. In summary, March witnessed increased sales and listings, prompting a shift towards a seller's market, albeit with pricing experiencing marginal increments.

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