Resale markets across Greater Vancouver, Fraser Valley, and Victoria saw a shift towards balanced market conditions due to increased inventory and moderated demand in May. In Greater Vancouver and Fraser Valley, sales were below seasonal averages, while inventories rose significantly. Victoria also saw a substantial increase in active listings, providing buyers with more choices and time. Despite these changes, prices remained relatively stable across all three regions, with only slight variations. This market stability reflects a cautious buyer sentiment amid expectations of potential interest rate cuts.  

Inventory Grows as Demand Moderates

In May, the demand for resales in Greater Vancouver was lower than expected and below what is typical for this time of year. The region recorded 2,733 residential resales, which is a 19.6% decline compared to the 10-year seasonal average and a 19.9% drop from the same period last year.    

With the slowdown in demand, inventory levels have been accumulating month over month, reaching 13,600 homes actively listed for sale in May. The total number of properties listed in Greater Vancouver has increased by 46.3% compared to May 2023 and is 19.9% above the 10-year seasonal average for listings in the month. Inventory continues to rise as many buyers are hesitant to take the plunge due to low consumer confidence. With hopes that interest rates will decrease this summer, many are opting to wait for these potential changes.     

With rising inventory levels and subdued demand, the market is shifting toward more balanced conditions, evidenced by an overall sales-to-listings ratio of 20.8% across all property types. In such conditions, prices typically soften or grow at a slower pace. The overall HPI Benchmark for all property types stands at $1,212,000, reflecting a marginal 0.5% increase from the previous month and a 2.3% rise compared to May 2023.     

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Springtime brings an Influx of New Listings, but not Demand

In May 2024, sales in the Fraser Valley did not experience the usual springtime surge in demand, with only 1,517 resales recorded, positioning these numbers 21.0% below the ten-year seasonal average. While sales remained slow, inventory continued to rise, as new listings for May came in at a faster-than average pace. This influx of new listings, combined with a decreasing demand for homes, has resulted in the Fraser Valley reaching its highest level of inventory since September 2019 with a total of 7,904 active listings for the month of May.   

The Fraser Valley currently sits in a balanced market, with a sales-to-active listings ratio of 19.0%. Both townhomes and detached homes are sitting approximately 1.5 days longer on market, while condominiums have remained steady at 23 days on market. Despite homes entering the market faster than demand can keep up, prices have remained relatively stable only decreasing around 0.2% from the previous month, reaching $1,006,300 for all product types.   

With anticipation growing for an upcoming rate cut, most buyers have been observed to be sitting on the sidelines and monitoring the market. It is likely that until a cut is actually made, inventory will continue to increase while demand remains subdued, bringing the market further into a balanced territory.   

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Increasing Inventory Allowing Purchasers to take their time

In May 2024, the resale market in Greater Victoria saw a total of 763 properties sold, marking a slight decrease in sales compared to the previous year. While the sales of single-family homes remained consistent with May 2023 at 399 units, condominium sales decreased by 5.2% for the same period.

Furthermore, active listings increased by over 50% compared to May 2023, reaching a total of 3,338 homes for sale. This relative stability in demand, coupled with the significant increase in listings, has created a more balanced market in Victoria, providing purchasers with greater choice and more time when purchasing a home. These factors have also allowed for benchmark prices to remain relatively stable, with a 0.7% increase month-over-month for single family homes and 1.2% increase for condominiums.

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