In June, Metro Vancouver home sales recorded were below both seasonal and historical averages. With less buyer competition, inventory levels have risen to their highest since spring 2019.
According to the Greater Vancouver Realtors (GVR), there were 2,418 residential sales in June 2024, marking a 19.1% decline from the 2,988 sales in June 2023. This figure is also 23.6% below the 10-year seasonal average of 3,166.
“The June data continued a trend we’ve been watching where buyers appear hesitant to transact in volumes we consider typical for this time of year, while sellers remain keen to bring their properties to market,” Andrew Lis, GVR’s director of economics and data analytics said. “This dynamic is bringing inventory levels up to a healthy range not seen since before the pandemic. This trend is providing buyers more selection to choose from and driving all market segments toward balanced conditions.”
In June 2024, there were 5,723 newly listed detached, attached, and apartment properties for sale on the MLS® in Metro Vancouver, which is a 7% increase from the 5,347 listings in June 2023. This number is also 3% above the 10-year seasonal average of 5,554.
Currently, there are 14,182 properties listed for sale on the MLS system in Metro Vancouver, reflecting a 42% increase compared to June 2023's 9,990 listings. This total is 20.3% above the 10-year seasonal average of 11,790.
The sales-to-active listings ratio across all property types in June 2024 is 17.6%.
By category they break down as follows:
13.1% for detached homes
21.1% for attached properties
20.3% for apartments.
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.
“With an interest rate announcement from the Bank of Canada in July, there is a possibility of another cut to the policy rate this summer. This is yet another factor tilting the market in favour of buyers, even if the boost to affordability is modest,” Lis said. “But June’s lower-than normal transaction volumes suggest many buyers remain hesitant, which has allowed inventory to accumulate and has kept a lid on upward price pressure across market segments. With that said, the transaction-level data do show that well-priced properties are still selling quickly, suggesting astute buyers are able to spot value and act when opportunities arise.”
The Home Price Index composite benchmark price for all residential properties in Metro Vancouver is now $1,207,100. This is a 0.5% increase from June 2023, but a 0.4% drop from May 2024.
In June 2024, detached home sales reached 694, an 18.2% decline from the 848 sales in June 2023. The benchmark price for a detached home is $2,061,000, showing a 3.7% increase from June 2023 and a 0.1% decrease from May 2024.
Sales of apartment homes were 1,245 in June 2024, down 20.9% from the 1,573 sales in June 2023. The benchmark price for an apartment is $773,400, up 1% from June 2023, but down 0.4% from May 2024.
Attached home sales totaled 456 in June 2024, a 16.6% decrease from the 547 sales in June 2023. The benchmark price for a townhouse is $1,138,100, reflecting a 3% increase from June 2023 and a 0.6% decrease from May 2024.
The Take Away:
We are now seeing a lot of homes listed on the market. This is a plus for buyers and a welcomed relief from the previous years of breakneck market speeds. This is leading us towards a balanced market as there are ample homes to select from.
In a balanced market, there is less advantage to either the buyers or the sellers. This means that on the selling side, pricing will have to be sharp and logical. If your home is priced correctly with numbers to support it, it will sell… If your home is on for a “fishing expedition” price it will sit longer than the others and likely will sell for less.
The buyers are now able to negotiate as there isn’t someone running up behind them to get it if they do not make an offer immediately. Buyers will also be using the same principles of logic and stats that the sellers should be using to arrive at their price.
Overall, we may see some more activity in the market as there is a high probability of an interest rate reduction this month, which will bring more buyers back into the market as they gain more confidence that the increases are over. We will likely see more of an effect later in the year and into early next year as renewals will be coming up from the 2020 era and they will have to renew at a higher level. We will also likely see more rental homes listed as they will also have to handle a significantly higher rate for their mortgage; along with more rules, hell-bent on punishing landlords… But that is a different article.
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.