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Greater Vancouver March 2024 Presale Pulse

March 15, 2024

March 2024 Greater Vancouver Real Estate Market Insights

Welcome to the March 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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 Insights and Takeaways from the February Bank of Canada Meeting 

In February, the macroeconomic landscape witnessed significant developments, marked by the aftermath of the recent Bank of Canada meeting. The meeting, and its results, were further confirmation of existing economic trends. Despite promising recent numbers, particularly the first month-over-month CPI decrease since May 2020, Bank of Canada Governor, Tiff Macklem opted to maintain the status quo, keeping the overnight rate at 5.00%.  There is a delicate balance between avoiding abrupt cuts and ensuring stability in the market, drawing parallels to past confusion caused by unexpected policy adjustments. The cautionary approach aims to prevent a potential cycle restart if inflation surges again. The brief inflation scare in January, subsequently revised to 2.4% from 2.6% in December, contributed to market nervousness, exemplified by immediate equity market drops. Looking ahead, the next Bank of Canada meeting on April 10 is eagerly anticipated, with expectations of another hold. The key takeaways underscore the importance of much-needed economic data, such as the CPI decrease, and the gradual impact of economic growth on interest rates.

Building Buzz: Insights into February's Presale Market 

There has been a noticeable uptick in activity in the Greater Vancouver Presale Market in February, reflecting a positive shift in momentum. Building on the predictions from the previous month, six projects were launched, introducing a total of 590 units to the market, with 249 units successfully sold, resulting in a 42% monthly absorption rate. Notably, the Juno project by Streetside Developments stood out, accounting for a significant portion of the sales numbers. The success of projects like Juno can be attributed to attractive deposit structures, such as the 10% deposit option. The trend of discounted deposit structures appears to be gaining traction, with The Commons by Zenterra offering a 5% deposit structure in March. Despite concerns stemming from past experiences, the current market conditions, including high-interest rates, have made these deposit structures more appealing to buyers. Looking ahead, March is anticipated to see a surge in launches, with 14 projects forecasted to bring a total of 2,150 units to the market. Noteworthy projects, like Ethos by Anthem and Reign Tower Two by Wesgroup, are set to contribute to the dynamic landscape, each employing unique strategies like inventive campaigns and buyer draws to distinguish themselves in a competitive market. As the spring market approaches, the industry is buzzing with excitement, and the innovative approaches taken by developers aim to maintain relevance and generate interest among potential buyers.

A Positive Shift In February's Resale Landscape 

The Greater Vancouver resale market exhibited robust performance in February, marking the second consecutive month of growth. Sales surged, with a remarkable month-over-month increase of over 45% and a yearly rise of 14%, surpassing the 2000 mark and instilling a sense of positivity in the market. Despite remaining 23% below the 10-year seasonal average for February, the increased sales momentum was a notable trend. Simultaneously, active listings experienced a 12% monthly and a 16% yearly uptick, signalling a revival in seller activity. This uptrend, combined with a 3% rise above the 10-year seasonal average, suggests an expanding supply entering the market. However, the heightened demand absorbed this influx, maintaining a seller's market, evident in the 22.4% sales to active listings ratio across all product types. The Home Price Index (HPI) revealed a 1.9% month-over-month appreciation, reflecting a seller-favorable environment. Despite the marginal increase, the benchmark price remains 6.3% below the peak values observed in April 2022. 

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