Home sellers awaken this spring, bringing much-needed inventory to the housing market

Home sellers awaken this spring, bringing much-needed inventory to the housing market

While Metro Vancouver home sellers appeared somewhat hesitant in January, new listings rose 31 per cent year-over-year in February, bringing a significant number of newly listed properties to the market.

Greater Vancouver REALTORS® (GVR) reports that residential sales in the region totalled 2,070 in February 2024, a 13.5 per cent increase from the 1,824 sales recorded in February 2023. This was 23.3 per cent below the 10-year seasonal average (2,699).

“While the pace of home sales started the year off briskly, the pace of newly listed properties in January was slower by comparison. A continuation of this pattern in February would have been concerning, as it could quickly tilt the market towards overheated conditions,” Andrew Lis, GVR’s director of economics and data analytics said. “With new listings up about 31 per cent year-over-year in February, this will relieve some of the pressure that was building in January and offer buyers more choice as we enter the spring and summer markets.”

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Home Sales Across Metro Vancouver’s Housing Market Off To Strong Start In 2024

Home Sales Across Metro Vancouver’s Housing Market Off To Strong Start In 2024

While the Metro Vancouver market ended 2023 in balanced market territory, conditions in January began shifting back in favour of sellers as the pace of newly listed properties did not keep up with the jump in home sales.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential sales in the region totalled 1,427 in January 2024, a 38.5 per cent increase from the 1,030 sales recorded in January 2023. This was 20.2 per cent below the 10-year seasonal average (1,788).
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Government Extends Ban On Foreign Buying of Canadian Housing

Government Extends Ban On Foreign Buying of Canadian Housing

Christian Paas-Lang · CBC News · Posted: Feb 04, 2024 8:22 AM PST | Last Updated: February 4

The government is extending an existing ban on foreign home purchasing in Canada, with the measure now set to expire at the beginning of 2027. (Laura Meader/CBC)

The federal government is extending its ban on foreign home purchasing in Canada, Finance Minister Chrystia Freeland announced in a release Sunday.

The rule, which was first announced in 2022, will now be extended until the beginning of 2027. It bans foreign nationals and commercial enterprises from buying residential property in Canada, with exceptions for some international students, refugee claimants and temporary workers.

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Interest Rates are Expected to Decrease This Year: Here’s How That’ll Impact Housing

Interest Rates are Expected to Decrease This Year: Here’s How That’ll Impact Housing

The first policy interest rate cut for Canada this year could come as soon as this spring, according to Marc Ercolao and TD Economics.

After a year where interest rates skyrocketed at a pace not seen in decades, economists have said that the Bank of Canada’s (BoC) focus is now moving toward rate cuts, which has implications for the country’s housing market.

In an analysis note, Ercolao, an economist at TD Bank, wrote that preliminary housing market data for December pointed to strong sales activity and declining listings as well as tightening conditions in major markets.

“The greater-than-expected drop in yields, and subsequently mortgage rates, in the fourth quarter partially explains this uptick in activity,” he wrote.

“The BoC will be watching the housing market as seasonally strong spring homebuying will fall directly in line with the expected timing of interest rate easing.”

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Despite 6-month slump to close year, Tri-Cities housing prices had significant increases in 2023

Despite 6-month slump to close year, Tri-Cities housing prices had significant increases in 2023

BY PATRICK PENNER, LOCAL JOURNALISM INITIATIVE REPORTER ● COQUITLAMHOUSINGPORT COQUITLAMPORT MOODY ● JANUARY 8, 2024

Housing cost increases in the Tri-Cities were significant in 2023 despite a slump over the last six months.

It now costs more than $2 million to purchase an average single-family home in Port Moody, nearly $1.8 million in Coquitlam, and $1.4 million in Port Coquitlam, the price increasing over 7 percent through the calendar year.

The Real Estate Board of Greater Vancouver (REBGV) released their year-end statistics last week, describing “balanced market conditions” regionally as the 2023 came to a close.

Despite sales and new listings being well below their 10-year averages, the board said the real story was “surprising resilience in the face of the highest borrowing costs seen in over a decade.”

Andrew Lis, REBGV’s director of economics and data analytics, said the five-percent plus gains in home prices across all housing types in Metro Vancouver shows the region remains attractive for buyers.

“You could miss it by just looking at the year-end totals, but 2023 was a strong year for the Metro Vancouver housing market considering that mortgage rates were the highest they’ve been in over a decade,” Lis said. “Elevated borrowing costs alone aren’t enough to dissuade buyers determined to get into this market.”

Prices in the Tri-Cities saw a meteoric rise in the first half of the year, surpassing the highs seen during the COVID-19 pandemic, and recovering from the shocks felt immediately after the Bank of Canada began increasing interest rates.

For the year-end total: the largest price increases occurred for Port Moody apartments at 8.1 percent, now averaging for $735,000; while single-family homes were the biggest winners among property types, with the median price increase being 7.3 percent across the Tri-Cities.

But benchmark prices for most property types in the region, including the Tri-Cities, have taken a break from growth over the last six months.

In the Tri-Cities, townhome prices have been hit that hardest over the past six months. Townhome prices are down 4.6 percent in Coquitlam, down 5.1 percent in Port Coquitlam, and 2.5 percent in Port Moody.

Similarly, apartment prices are down in Coquitlam and Port Coquitlam, 3.5 and 3.1 percent, respectively, while Port Moody apartments prices have seen a slight bump of 0.9 percent.

Single-family home prices have been the most stable over the six-month slump, with Port Moody showing gains of 2.7 percent, Coquitlam down half a point, and Port Coquitlam down 2.9 percent.

Sales and new listing in Metro Vancouver are down significantly for the year, however.

Regional sales totalled just over 26,000 in 2023: 23.4 percent below the 10-year average, a 10.3 percent decrease from total 2022 sales, and a 41.5 percent decrease from 2021 sales.

The number of new listings regionally totalled nearly 51,000 in 2023: down 10.5 percent in 2023 compared to the 10-year average, a 7.5 percent decrease from 2022, and a 20 percent decrease from 2021.

In the Tri-Cities, both the total real estate sales (3,690) and number of new listings (6,319) in 2023 fell by 9 percent compared to the previous year.

Lis said the market story of 2023 is too few homes relative to qualified buyers. He said that sellers were cautious at the start of the year leading to a slow sales start, which in turn led to near-record low inventory by spring, causing prices to spike.

“Looking back on the year, it’s hard not to wonder how we’d be closing out 2023 if mortgage rates had been a few percent lower than they were,” he said. “And it looks like we might get some insight into that question in 2024, as bond markets and professional forecasters are projecting lower borrowing costs are likely to come, with modest rate cuts expected in the first half of the New Year.”

There are nearly 9,000 active listings with REBGV, a 13 percent increase compared to last year, and slightly above the 10-year average.

  • Credit: Patrick Penner, Local Journalism Initiative Reporter Tri-Cities Dispatch

Metro Vancouver Housing Market shows resilience in 2023, Ending the year in Balanced Territory

Metro Vancouver Housing Market shows resilience in 2023, Ending the year in Balanced Territory

Metro Vancouver’s housing market closed out 2023 with balanced market conditions, but the year-end totals mask a story of surprising resilience in the face of the highest borrowing costs seen in over a decade.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential sales in the region totalled 26,249 in 2023, a 10.3 per cent decrease from the 29,261 sales recorded in 2022, and a 41.5 per cent decrease from the 44,884 sales in 2021.

Last year’s sales total was 23.4 per cent below the 10-year annual sales average (34,272).

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Prices for Tri-City homes up in 2023 amid high borrowing rates

Prices for Tri-City homes up in 2023 amid high borrowing rates

If you were looking for a new home last year, there wasn’t much to shop for.

Numbers released this week by the Real Estate Board of Greater Vancouver (REBGV), an organization that represents 15,000 realtors from Whistler to Maple Ridge, show 7.5 per cent fewer properties on the market in Metro Vancouver compared with 2022.

Still, with the dip in listings and the high cost of borrowing for purchasers, sellers continued to push up prices as buyers competed for the few homes available.

The benchmark home price in Metro was $1.1 million, a five per cent uptick over 2022.

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Assessed property values stabilize in parts of B.C. including Metro Vancouver

Assessed property values stabilize in parts of B.C. including Metro Vancouver

VANCOUVER — The latest housing assessment figures in British Columbia show residential property prices have stabilized in several provincial housing markets.

BC Assessment says changes in Metro Vancouver have been “notably less” than previous years, with only single-family homes in the Village of Belcarra seeing a shift greater than five per cent with a nine per cent increase for a typical family home to just over $2 million.

The assessed value of a single-family home in Vancouver which reflected the market on July 1, 2023, rose four per cent to just above $2.2 million, while strata properties remained nearly unchanged at $807,000.

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Balanced conditions come to the Metro Vancouver housing market for the holiday season

Balanced conditions come to the Metro Vancouver housing market for the holiday season

With one month left in 2023, a steady increase in housing inventory is offering home buyers across Metro Vancouver1 among the largest selection to choose from since 2021.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential sales2 in the region totalled 1,702 in November 2023, a 4.7 per cent increase from the 1,625 sales recorded in November 2022. This was 33 per cent below the 10-year seasonal average (2,538).

“We’ve been watching the number of active listings in our market increase over the past few months, which is giving buyers more to choose from than they’ve been used to seeing over the past few years,” Andrew Lis, REBGV’s director of economics and data analytics said. “When paired with the seasonal slowdown in sales we typically see this time of year, this increase in supply is creating balanced conditions across Metro Vancouver’s housing market.”

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Metro Vancouver housing prices to increase as sales to drop in 2024, Re/Max predicts

Metro Vancouver housing prices to increase as sales to drop in 2024, Re/Max predicts

Meanwhile, economist forecasts no rate cuts coming until mid-2024

Those hoping for Metro Vancouver housing prices to soften may have to wait a little longer.

Predictions for the local real estate market going into 2024 include a two per cent increase in average residential prices and a decrease in sales by three per cent, according to a Nov. 28 report from Re/Max Canada.

“It’s no secret that the Bank of Canada has really held the cards as far as the market is concerned in Canada, and affordability has remained a challenge throughout the balance of 2023. Going into next year, it looks like we’re going to continue to have high rates for a few months,” said Christopher Alexander, president of Re/Max Canada, in an interview.

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