Homes for sale in Metro Vancouver kept rising in April, jumping 42% compared to last year, and surpassing 12,000 listings, a level we haven't seen since summer 2020. Greater Vancouver Realtors (formally the real estate board of Greater Vancouver) report that residential sales hit 2,831 in April 2024, which is a 3.3% increase from the 2,741 sales in April 2023. However, this is still 12.2% below the 10-year seasonal average of 3,223 sales.
“It’s a feat to see inventory finally climb above 12,000. Many were predicting higher inventory levels would materialize quickly when the Bank of Canada began its aggressive rate hikes, but we’re only seeing a steady climb in inventory in the more recent data,” Andrew Lis, GVR’s director of economics and data analytics said. “The surprise for many market watchers has been the continued strength of demand along with the fact few homeowners have been forced to sell in the face of the highest borrowing costs experienced in over a decade.”
In April 2024, 7,092 detached, attached, and apartment properties were newly listed for sale on the MLS in Metro Vancouver, marking a 64.7% jump from the 4,307 listings in April 2023. This number is also 25.8% higher than the 10-year seasonal average of 5,637 listings. The total number of properties currently listed for sale on the MLS® in Metro Vancouver is 12,491, which is a 42.1% increase from April 2023's 8,790 listings and 16.7% above the 10-year seasonal average of 10,704.
The sales-to-active listings ratio currently sits at 23.5% for all properties combined (detached, attached and apartment) and breaks down by types as follows:Detached: 17.6%Attached: 31%Apartments: 26% Historical data suggests that sustained ratios below 12% exert downward pressure on home prices, while those exceeding 20% over several months typically lead to upward price trends.
“Another surprising story in the April data is the fact prices continue climbing across most segments with recent increases typically in the range of one to two per cent month-over-month,” Lis said. “The one segment that didn’t see an uptick in prices in April was apartments, which saw a 0.1 per cent decline month-over-month. This moderation is likely due to a confluence of factors impacting this more affordability sensitive segment of the market, particularly the impact of higher mortgage rates and the recent boost to inventory levels, tempering competition somewhat.”
The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver is now $1,205,800, up 2.8% from April 2023 and 0.8% from March 2024.
In April 2024, there were 814 detached home sales, a 0.7% rise from the 808 sales in April 2023, with the benchmark price at $2,040,000, which is 6.3% higher than April 2023 and 1.6% higher than March 2024.
Apartment home sales reached 1,416 in April 2024, a slight 0.2% increase from the 1,413 sales in April 2023. The benchmark price for an apartment is $776,500, up 3.2% from April 2023 but down 0.1% from March 2024.
Attached home sales totaled 580 in April 2024, a significant 16% increase from the 500 sales in April 2023. The benchmark price for a townhouse is $1,127,200, marking a 4.3% increase from April 2023 and a 1.3% increase from March 2024.
The Take Away:
We have seen a lot of homes coming on the market in the past few months. Some contributing factors to this may be that with the new short-term rental rules taking hold on May1, 2024 it has made many purpose purchased apartments no longer permitted to be rented as an AirBNB. The rental prices pale in comparison to those of long term and thus may be a reason for the landlord/owners to look to cash out. Another contributing factor is that many mortgages are coming up for renewal in the relatively near future so some owners are looking to liquidate over having to remortgage at a significantly higher level than that of 5 years ago (a typical mortgage term).
Needless to say that the next meeting of the Bank of Canada (BoC) will be on June 25th and it is the opinion of many realty professionals and mortgage brokers that we will see an influx of activity should the BoC lower the interest rate as many purchasers have been sitting on the side lines waiting for a decrease in the rate in order to increase purchasing power.
Right now is a good time for purchasers to shop for a home as there is an abundance of of properties that are available so sellers that are interested in selling will be more open to negotiation. We will likely hear of people claiming “the bubble has burst!” and other such nonsense… While we have a bit of a slowing in activity in the Greater Vancouver area, we are missing a MAJOR contributing factor to a “bubble” in that most sellers do not NEED to sell, they WANT to sell. This is a difference between a bubble and a market correction.
If you would like to have to some real world advice about how to navigate the current market and plan for the future call or text me at 604-522-4777 or e-mail directly at: haze@hazerealty.com or join us at our Facebook Page (www.facebook.com/HazeRealty) and we see what the best move can be.