Home Sellers are Stepping Into Action This Spring, And Not A Moment Too Soon...

March 2024 in Vancouver Real Estate

With the February market data now at our fingertips, it’s time to do a deep dive into the latest housing market data and what it means for you. Whether you’re planning on buying, selling, or holding your asset in the coming months, there’s something to learn for everyone.

Let’s start with the good news; inventory levels are finally rising.

In contrast to a somewhat cautious start in January, new listings surged by 31 percent year-over-year in February, ushering in a substantial number of freshly listed properties.

According to the Greater Vancouver REALTORS® (GVR), residential sales in the region hit 2,070 in February 2024, marking a 13.5 percent increase from the 1,824 sales recorded in February 2023. While this figure trailed 23.3 percent below the 10-year seasonal average (2,699), the market showed signs of vitality, especially compared to the sluggish Q3 and Q4 of 2023.

As you may remember from the analysis of the January stats, the year started with a powerful resurgence of home buyers and a noticeable spike in activity, while new listings severely lacked. If this had continued into February, there would have been concern about the sustainability of balanced market conditions.

This surge in new listings is positive for my buyer and seller clients alike. For my buyers, we are finding much more product to review that is fitting much more closely with their wants and needs. For my sellers, it’s positive as it’s reflecting the general increasing market confidence. Additionally, we’ve seen a lot of buyers sit on the sidelines not only because of affordability concerns but also because of product concerns and a lack of good supply. More good supply leads to more buyers coming back to the market, which improves conditions for sellers who also in turn need to purchase new product.

Currently, there are 9,634 properties listed for sale on the MLS® system in Metro Vancouver, reflecting a 16.3 percent increase compared to February 2023 (8,283). This stands three percent above the 10-year seasonal average (9,352). 

Breaking down the sales-to-active listings ratio for February 2024 across all property types, it stands at 22.4 percent. By property type, the ratio is 16 percent for detached homes, 27.9 percent for attached, and 25.9 percent for apartments. 

Historical data analysis suggests that home prices may experience downward pressure when the ratio dips below 12 percent for an extended period and upward pressure when it surpasses 20 percent over several months. As it stands, slight upward pressure will continue.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver currently stands at $1,183,300. This signifies a 4.5 percent increase over February 2023 and a 1.9 percent increase compared to January 2024.

Key Takeaways:

Buyers:

Much more product has come into the market, and I expect this trend to continue through March and April as more positive market signs get sellers off the fence. Be strategic, move quickly when you find the right property, and work with an expert.

Sellers:

As confidence increases, market urgency increases as more buyers enter the market. The times of indecisive and elusive buyers are thankfully fading away, and in some cases, sellers are holding most of the power as our market is still leaning slightly toward a seller's market.

As always, if you have any questions about your specific situation, don’t hesitate to reach out.