Blog | Geoff Jarman | Real Estate News and Updates

VANCOUVER HOUSING MARKET UPDATE | NOVEMBER 2024

MARKET UPDATE: Home Buyer Demand Continues to Strengthen in November

Source: GVR

Home sales registered in the MLS® in the Metro Vancouver¹ market rose 28 percent year-over-year in November, building on the momentum of the 30 percent year-over-year increase seen in October.

The Greater Vancouver REALTORS® (GVR)² reports that residential sales in the region totalled 2,181 in November 2024, a 28.1 per cent increase from the 1,702 sales recorded in November 2023. This was 12.8 per cent below the 10-year seasonal average (2,500).

“When we saw demand pick up in October, there was still a question over whether it was a blip in the data or the start of an emerging trend. While the November market isn’t quite a Cyber Monday door-crasher, buyers are continuing to take advantage of the relatively balanced market conditions while they last.”
Andrew Lis, GVR director of economics and data analytics

There were 3,725 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in November 2024. This represents a 10.6 per cent increase compared to the 3,369 properties listed in November 2023. This was 5.4 per cent above the 10-year seasonal average (3,535).

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 13,245, a 21.2 per cent increase compared to November 2023 (10,931). This is 26.1 per cent above the 10-year seasonal average (10,502).

Across all detached, attached and apartment property types, the sales-to-active listings ratio for November 2024 is 17.1 per cent. By property type, the ratio is 12.7 per cent for detached homes, 23.1 per cent for attached, and 18.7 per cent for apartments.

Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

Sales-to-active listings ratio - November 2024. Market Update — Source: GVR

“Although demand has increased as we head into year-end, the number of newly listed properties coming to market in November remained sufficient to keep prices steady across all segments,” Lis said.

“But as we move into the New Year, if the strength in demand continues at the current pace, and the pace of newly listed properties coming to market doesn’t keep up, it may not be long until we see the return of upward pressure on prices.”

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,172,100. This represents a 0.9 per cent decrease over November 2023 and nearly unchanged compared to October 2024.

Sales of detached homes in November 2024 reached 626, a 19.7 per cent increase from the 523 detached sales recorded in November 2023. The benchmark price for a detached home is $1,997,400. This represents a one per cent increase from November 2023 and a 0.3 per cent decrease compared to October 2024.

Sales of apartment homes reached 1,089 in November 2024, a 28.1 per cent increase compared to the 850 sales in November 2023. The benchmark price of an apartment home is $752,800. This represents a 1.2 per cent decrease from November 2023 and a 0.6 per cent decrease compared to October 2024.

Attached home sales in November 2024 totalled 451, a 42.7 per cent increase compared to the 316 sales in November 2023. The benchmark price of a townhouse is $1,117,600. This represents a 1.8 per cent increase from November 2023 and a 0.8 per cent increase compared to October 2024.

¹ Areas covered by Greater Vancouver REALTORS® include: Bowen Island, Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.

² On February 12, 2024, The Real Estate Board of Greater Vancouver changed its organizational name to Greater Vancouver REALTORS®.

Vancouver BC – December 3, 2024

CLICK HERE – Full GVR November 2024 Housing Market Update

Have a look at the GVR October 2024 Market Update Insights!

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Tags: market update, housing market update, metro Vancouver housing market update, November 2024 metro Vancouver housing market update

Condo Market Slowdown in Vancouver: Challenges and Future Outlook

Investors are pulling back, bringing the condo sector to a standstill.

Source: Western Investor

The Vancouver condo market is experiencing a significant slowdown, as highlighted in a recent report by PwC and the Urban Land Institute (ULI). Developers are grappling with high costs and weak demand, leading to a “grinding halt” in the sector. The report, titled “Emerging Trends in Real Estate 2025,” points to the current interest-rate environment and rising construction costs as major factors contributing to the market’s freeze.

In major Canadian markets like Toronto and Vancouver, the cost of proceeding with condo developments has become prohibitive for many developers. Investors, who constitute a large portion of new condo buyers, are pulling back, further exacerbating the situation. Pre-sale activity in Vancouver is notably depressed, with unsold inventory accumulating and some buyers struggling to close on new condo purchases.

The report suggests that these conditions are likely to persist into 2025, with developers already factoring in potential future rate cuts by the Bank of Canada. Meanwhile, potential buyers are adopting a wait-and-see approach, anticipating further price corrections and lower interest rates. The widening price gap between existing condos and pre-construction units is also weakening pre-sale activity.

On the supply side, lenders are becoming increasingly cautious about financing condo projects. The market downturn is leading to a significant inventory of unsold units, with developers incurring carrying costs and debt financing expenses, making it unfeasible to launch new projects. The industry is bifurcating, with well-capitalized developers continuing to navigate the pressures, while small- and mid-sized developers may struggle to survive.

Despite the current challenges, the report notes that pent-up demand could eventually lead to a market recovery, with a new focus on end users rather than leveraged investors.

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