The recent increase in key lending rates has sparked major concerns among Canadians, particularly those looking to buy a home. The housing market in Canada is facing challenges, but the Bank of Canada's recent announcement about a potential pause in the rate cycle may lead to normalized conditions later this year. Despite the low sales volume, the historically low inventory levels are contributing to stability in overall values.

Greater Vancouver: Inventory Replenishing for Spring Market

The Greater Vancouver market recorded 1,022 resale transactions in January, a 55.3% decline from January 2022. Despite the drop in sales, the Q1 2022 resales were historically high and the gap will narrow in the coming months. The number of active listings increased by 32.1% in January, indicating a healthy supply level relative to the current demand. The benchmark pricing remains stable, declining by just 0.3%.

Fraser Valley: Slow January Sales but Increase in Supply Anticipated

The Fraser Valley Real Estate Board recorded 626 transactions in January, a decrease of 12.6% from December and 52.2% from January 2022. The number of new listings reached a historic low, but the number of active listings increased by 5% from December. The benchmark prices for single-family detached homes, townhomes, and apartments decreased by 1.4%, 1.8%, and 0.2% from the previous month, respectively. A rise in supply is expected as sellers re-list in the spring market.

Greater Victoria: Mirroring Shifts in Metro Vancouver

The Greater Victoria market recorded 278 resales in January, a 40.8% decline from the previous year. The benchmark price for detached homes declined by 1.6% from December and 3.6% from January 2022. The market is experiencing similar shifts to those in Metro Vancouver.

Looking Towards Normalization

Despite the slow start to 2023, the housing market in Canada continues to show stability, thanks to the low inventory levels. The recent announcement by the Bank of Canada about a potential pause in the rate cycle may lead to more normalized market conditions later this year. As the spring market approaches, we can expect an increase in supply and a potential rise in sales.

Sales to Listing Ratios

Stats Packages: REBGV | FVREB | VREB

Stay tuned for a comprehensive perspective of the data and underlying insights on the resale and presale markets during our February 2023 edition of the Presale Pulse.