January 5, 2024 Metro Vancouver Resale Market Kicks Off The Year In A Balanced Market

Across the Metro Vancouver resale market, there was a decline in activity during the latter half of the year following a strong late spring and early summer season. This was due to the double mid-year interest rate hikes that occurred in June and July leading to escalated costs of borrowing throughout the year. Despite these challenges, the market has demonstrated resilience, ending the year in a balanced market across the region. 

RESILIENT GREATER VANCOUVER REGION ENDS THE YEAR IN A BALANCED MARKET

In December, the Greater Vancouver resale market recorded a total of 1,345 transactions, reflecting a 3.2% increase from the 1,303 sales recorded in December 2022. However, these figures trail behind the 10-year seasonal average of 2,114 sales by 36.4%. Meanwhile, total sales for 2023 amounted to 26,249, indicating a 10.3% decline from the preceding year and sitting 23.4% below the 10-year seasonal average. Despite lower-than-average sales numbers, the Greater Vancouver market has demonstrated resilience in navigating the challenges posed by escalating costs of borrowing throughout the year. 

Overall inventory for December amounted to 8,802 and is on par with the 10-year seasonal average. While total listings may have caught up in December, the entirety of 2023 fell short of the 10-year average by 10.5% with a total of 50,893 listings.

The MLS® HPI composite benchmark price for Greater Vancouver ended the year at $1,168,700. This represents a 1.4% decrease from the previous month but has increased 5% year-over-year. Throughout 2023, lower-than-average inventory has played a key role in maintaining benchmark pricing, even in the face of rising interest rates. This was particularly evident in the spring months, when qualified buyers were faced with constrained housing supply, leading to a rise in benchmark pricing. 

Greater Vancouver resales ended the year in a balanced market, with a sales-to-listings ratio of 16.0% across all product types. Detached homes have entered buyers’ territory with a ratio of 11.1% while townhomes and condominiums remain balanced at 18.7% and 19.6%, respectively. 

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IN 2023, THE FRASER VALLEY REGION RECORDS BOTH THE LOWEST SALES AND LISTINGS IN A DECADE

In 2023, the Fraser Valley region saw a decline in activity during the latter half of the year, following robust spring sales, which was influenced by double mid-year interest rate hikes. Sales recorded in the Fraser Valley totalled 14,713 throughout 2023, marking a 4% decline compared to 2022 and sitting 23% below the 10-year average. This signifies the lowest total annual sales recorded in the region in a decade. New listings for the year hit a 10-year low as well, sitting at 29,610, marking an 8% drop below the 10-year average.

In December, The Fraser Valley Real Estate Board recorded 837 resales, a decrease of 6% from November, but an increase of 17% when compared to December 2022. Although slower sales activity can be expected during the holiday season, December figures fell 27% below the 10-year average for the month.

There were 942 new listings in the Fraser Valley in December, reflecting a 17% increase when compared to the same period last year. Total active listings at the end of December amounted to 4,670, an increase of 19% when compared year-over-year, and 17% higher than the 10-year average. The sales-to-active listings ratio closed the year at 18%, indicating balanced market conditions, although townhomes and apartments remained in a seller’s market at 29% and 26% respectively.

Benchmark pricing declined for the fifth consecutive month, resting at $988,900, 1.5% lower than in November but 5% higher year-over-year. When compared to the 2023 peak recorded in July, the benchmark price is down by 6%. 

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VICTORIA REAL ESTATE EXPERIENCES SEASONAL SLOWDOWN, SALES AND INVENTORY DECREASES

In December 2023, the Victoria Real Estate Board continued to witness a seasonal decline in sales, with 329 properties sold. This represented a 16.5% drop from November yet indicated a 2.8% rise from December 2022. Throughout 2023, properties sold totalled 6,207, marking an 8.77% decrease from the total sales recorded in 2022. Active listings totalled 2,132 by the year's end, signifying a 19.4% decrease from the prior month but reflecting a 26.3% increase compared to the end of 2022, signifying that the market is returning to a more traditional seasonal cycle. 

The HPI benchmark value for condominiums in the Victoria Core in December 2023 stood at $562,000, marking a 2.7% decline from the prior month and a 0.7% decrease from December of last year. Despite ongoing market demand in the region, consumers continued to be impacted by escalated borrowing costs throughout 2023, resulting in a reduction of their purchasing power. 

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