As the holiday season approaches, Metro Vancouver’s housing market is entering a phase of balanced conditions, offering homebuyers one of the most extensive selections since 2021. According to the recent report from the Real Estate Board of Greater Vancouver (REBGV), the market is experiencing a notable increase in housing inventory, providing buyers with a diverse range of options to choose from.
Steady Increase in Inventory
In November 2023, residential sales in Metro Vancouver reached 1,702, marking a 4.7% increase from the same period in 2022. Despite being 33% below the 10-year seasonal average, this uptick in sales is coupled with a rise in active listings, creating what Andrew Lis, REBGV’s director of economics and data analytics, describes as “balanced conditions” in the housing market.
More Choices for Buyers
The surge in active listings, totaling 3,369 properties in November 2023, reflects a 9.8% increase compared to the previous year. This increase in supply is contributing to a balanced market, allowing buyers to explore a variety of detached, attached, and apartment properties.
Sales-to-Active Listings Ratio
The sales-to-active listings ratio for November 2023 stands at 16.3%, indicating a balanced market. Broken down by property type, the ratio is 12.7% for detached homes, 19.8% for attached homes, and 18.2% for apartments. Historically, a sustained ratio below 12% puts downward pressure on home prices, while a ratio exceeding 20% can lead to upward pressure.
Price Trends and Market Outlook
Balanced market conditions are often associated with flatter price trends, and Metro Vancouver has witnessed this since the summer months. While there may not be Cyber Monday discounts in the real estate market, prices have experienced a slight decrease since the summer. With economists predicting modestly falling mortgage rates in 2024, the market conditions for buyers are considered highly favorable.
Property Type Breakdown
– Detached Homes: Sales reached 523 in November 2023, a 7% increase from the previous year, with a benchmark price of $1,982,600.
– Apartments: 850 sales were recorded, a 0.4% increase, with a benchmark price of $762,700.
– Attached Homes (Townhouses): Sales totaled 316, a 12.5% increase, with a benchmark price of $1,092,600.
Looking Ahead
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,185,100, representing a 4.9% increase over November 2022. As the market maintains a delicate balance, buyers can anticipate favorable conditions, with prices having edged lower in recent months.
In conclusion, Metro Vancouver’s real estate market is poised for the holiday season with an abundance of choices for homebuyers, creating a balanced and favorable environment. As we move into 2024, the market outlook remains optimistic, offering a promising landscape for both buyers and sellers.
For more detailed information on real estate statistics or assistance with buying or selling a home, it is recommended to contact a local REALTOR® or visit the official website of the Real Estate Board of Greater Vancouver.