The Metro Vancouver real estate market experienced a notable increase in new property listings in July 2024, with the total number of new listings rising nearly 20% year over year.
However, despite the influx of new properties, residential sales in the region totaled 2,333 in July 2024, marking a 5% decrease from the 2,455 sales recorded in July 2023. This figure is also 17.6% below the 10-year seasonal average of 2,831 sales.
“The trend of buyers remaining hesitant, which began a few months ago, continued in the July data despite a fresh quarter percentage point cut to the Bank of Canada’s policy rate,” said Andrew Lis, director of economics and data analytics at GVR. “With the recent half percentage point decline in the policy rate over the past few months, and with so much inventory to choose from, it’s a bit surprising that transaction levels remain below historical norms as we enter the mid-point of summer.”
Increase in Listings and Inventory
The number of newly listed detached, attached, and apartment properties on the MLS® in Metro Vancouver reached 5,597 in July 2024, representing a 20.4% increase compared to the 4,649 properties listed in July 2023. This was also 12.7% above the 10-year seasonal average.
The total number of properties currently listed for sale in Metro Vancouver is 14,326, a significant 39.1% increase compared to July 2023. This figure is also 21.5% above the 10-year seasonal average.
Sales-to-Active Listings Ratio and Price Trends
Across all property types, the sales-to-active listings ratio for July 2024 was 16.9%. By property type, the ratio was 12.8% for detached homes, 20.1% for attached homes, and 19.3% for apartments. Historically, a sustained ratio below 12% tends to put downward pressure on home prices, while a ratio above 20% can lead to upward price pressure.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver was $1,197,700 in July 2024, reflecting a 0.8% decrease from both July 2023 and June 2024.
Breakdown of Sales by Property Type
- Detached Homes: Sales of detached homes reached 688 in July 2024, a slight increase of 1% from July 2023. The benchmark price for a detached home was $2,049,000, up 2.1% from the previous year but down 0.6% compared to June 2024.
- Apartment Homes: Sales of apartment homes totaled 1,192, a 6.9% decrease compared to July 2023. The benchmark price of an apartment home was $768,200, reflecting a 0.3% decrease from July 2023 and a 0.7% decrease compared to June 2024.
- Attached Homes: Attached home sales totaled 437 in July 2024, a 6.2% decrease from the previous year. The benchmark price of a townhouse was $1,124,700, a 1.4% increase from July 2023 but a 1.2% decrease from June 2024.
Outlook for the Coming Months
Andrew Lis noted that while the overall market remains balanced with healthy inventory levels, it remains to be seen whether the recent softening of prices and improved borrowing costs will entice more buyers to enter the market as fall approaches.
“It’s still early days, so we will watch the market for signs of transaction activity picking up in the months ahead,” he said.
The real estate market in Metro Vancouver continues to evolve, with buyers and sellers navigating a landscape shaped by changing economic conditions and consumer sentiment. As always, staying informed and seeking expert advice is crucial for those looking to make informed decisions in this dynamic market.
Do you have questions about the real estate market? The legal experts at Clark Woods LLP are happy to assist with your real estate and conveyance needs. Call 604-227-9153 today to setup a consultation or visit our real estate page for more information.