Market shifting in buyers’ favour, though hesitation remains

Metro Vancouver home sales registered on the MLS® remained below seasonal and historical averages in June. With reduced competition among buyers, inventory has continued to accumulate to levels not seen since the spring of 2019.

The Greater Vancouver REALTORS® (GVR) reports that residential sales in the region totalled 2,418 in June 2024, a 19.1 per cent decrease from the 2,988 sales recorded in June 2023. This was 23.6 per cent below the 10-year seasonal average (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.”
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Home sales down in May while inventory continues to increase

The number of transactions on the Multiple Listing Service® (MLS®) declined in May compared to what is typical for this time of year in Metro Vancouver(1). This shift has allowed the inventory of homes available for sale to continue to accumulate with over 13,000 homes now actively listed on the MLS® in the region.

The Greater Vancouver REALTORS® (GVR)(2) reports that residential sales in the region totalled 2,733 in May 2024, a 19.9 per cent decrease from the 3,411 sales recorded in May 2023. Last month’s sales total was also down 19.6 per cent from the 10-year seasonal average for May (3,398).

“The surprise in the May data is that sales have come in softer than what we’d typically expect to see at this point in the year, while the number of newly listed homes for sale is carrying some of the momentum seen in the April data,” Andrew Lis, GVR’s director of economics and data analytics said. “It’s a natural inclination to chalk these trends up to one factor or another, but what we’re seeing is a culmination of factors influencing buyer and seller decisions in the market right now. It’s everything from higher borrowing costs, to worries about the economy, to policy interventions imposed by various levels of government.”

Inventory at highest level since pandemic summer of 2020

Actively listed homes for sale on the MLS® in Metro Vancouver continued climbing in April, up 42 per cent year-over-year, breaching the 12,000 mark, a number not seen in the region since the summer of 2020.

Greater Vancouver REALTORS® (GVR) reports that residential sales in the region totalled 2,831 in April 2024, a 3.3 per cent increase from the 2,741 sales recorded in April 2023. This was 12.2 per cent below the 10-year seasonal average (3,223).

“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.”

Canadians are more confident in buying a home, despite the impact of inflation: RBC Poll

More respondents plan to buy in the next two years and believe it’s a good investment
50% are saving less to buy a home due to inflation
57% would need a side hustle or second job to afford a home
58% are worried about covering the costs of home ownership (66% among next-time home buyers)

TORONTO, April 23, 2024 – Despite affordability challenges and inflation continuing to impact how and when Canadians buy a home, confidence in making the move to purchase a home is rising. According to RBC’s 30th annual Home Ownership Poll, conducted among Canadians under the age of 65, 60% believe owning a house or condo is a good investment (up from 53% in 2023) and 29% are looking to buy in the next two years (up from 22% in 2023). Two-thirds (64%) say they have always dreamed of owning a home.

At the same time, the research found that half (50%) of Canadians say inflation is eroding their ability to save for a home. This challenge is acutely felt among those planning to purchase a home within the next two years. Among these potential buyers, there has been a 37% decrease in the total amount they have saved to put towards buying a home. Among those who have saved some amount, 36% say they aren’t putting aside money every month for a home purchase (up from 8% in 2023). Even with this setback, 41% of overall potential home buyers say it will take them four years or less to save enough for a down payment.

BC aims to protect strata owners with new regulations that close loopholes

BC strata owners will soon no longer be surprised by long-term repair and replacement costs as the province closes loopholes.

In a statement from the Ministry of Housing Monday, it said loopholes that allowed strata corporations to indefinitely defer depreciation reports will close. This means strata owners will have more “certainty and consistency” around common property repair and maintenance when the regulations take effect on July 1, 2024, the province said.

“No one wants to be surprised by a sudden special levy to cover repairs that should have been planned for,” Ravi Kahlon, Minister of Housing, said in a statement. “These regulations will help protect strata owners by ensuring depreciation reports are obtained regularly, providing them with the information and predictability they need to plan for future costs.”

Increased seller activity is giving buyers more choice this spring

Wednesday, April 3, 2024

The number of Metro Vancouver1 homes listed for sale on the MLS® rose nearly 23 per cent year-over-year, providing more opportunity for buyers looking for a home this spring.

Sales
The Greater Vancouver REALTORS® (GVR)2 reports that residential sales3 in the region totalled 2,415 in March 2024, a 4.7 per cent decrease from the 2,535 sales recorded in March 2023. This was 31.2 per cent below the 10-year seasonal average (3,512).

“If you’re finding the weather a little chillier than last spring, you may find some comfort in knowing that the market isn’t quite as hot as it was last spring either, particularly if you’re a buyer. Despite the welcome increase in inventory, the overall market balance continues inching deeper into sellers’ market territory, which suggests demand remains strong for well-priced and well-located properties.”

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.”

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

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.

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.”