HAPPY NEW YEAR! I hope your 2024 is off to a great start. I’ll keep this update short as December is typically pretty slow.
The next interest rate announcement is January 24th. Everything I’m reading indicates that the prime rate (thus variable rates) will remain unchanged. Expectation is for a decrease in the 2nd half of the year. Having said that, the bond market has been up and down lately so fixed rates have been changing as well.
December is always slower because many Sellers pull their listing as we get close to the holidays, and many Buyers decide to put their search on hold until the New Year due to a full schedule and travel plans. This past December felt busier than December 2022, and I feel that January will get off to a quick start.
I had a few Buyers try their offers in December, but most didn’t come together (a couple did though!). The Buyers were looking for a deal, and the Sellers (mostly Landlords) weren’t willing to budge enough. Buyers are willing to wait for better inventory and lower rates, and Sellers are thinking the market will improve this coming year. I think some of these Sellers will be keen to sell this year, so I would keep trying offers if you’re looking for a deal. I’ve had a lot of people ask me if the AirBnB changes will lead to more inventory (and lower prices) and I think it will for 1 and 2 bedrooms condos downtown, though I don’t think the price difference will be significant.
I think any good inventory listed this year will sell quickly – and you know the listings that are the “good” ones. I have a lot of Buyers who are still keen to buy, we have just been dealing with lower than average inventory with most of it being mediocre. Most listings I viewed in December were tenanted units, and they never show as well as something owner occupied. So when something good is listed, Buyers will be ready. This is evident from the multiple offer situations we saw all year on anything nice that was priced well.
I think we’ll see further price increases in 2024 and 2025 unless we see another surprise interest rate increase. Overall, I expect this year to be more active than last year, so spend your time learning about the market so you can jump on a good one.
Here’s a snippet from the Real Estate Board’s Monthly Update:
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.
Properties listed on the Multiple Listing Service® (MLS®) in Metro Vancouver totalled 50,893 in 2023. This represents a 7.5 per cent decrease compared to the 55,047 properties listed in 2022. This was 20.2 per cent below the 63,761 properties listed in 2021.
Currently, the total number of homes listed for sale on the MLS® system in Metro Vancouver is 8,802, a 13 per cent increase compared to December 2022 (7,791). This is 0.3 per cent above the 10-year seasonal average (8,772).
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,168,700. This represents a five per cent increase over December 2022 and a 1.4 per cent decrease compared to November 2023.
Onto the stats:
Vancouver West Real Estate Stats up to and including December 2023
The HPI Price was steady, but average and median price saw an increase for detached houses. This tells me that there were some high end sales this past month. Inventory and new listings, dropped.
HPI Price for Vancouver West
*Unfortunately HPI Price can’t be any more specific than Condo/Townhouse/House*
Average Sales Price for Vancouver West
Median Percentage of Original Price for Vancouver West
New Listings for Vancouver West
Total Inventory for Vancouver West
Total Sales for Vancouver West
Sales to Active Ratio for Vancouver West
Median Days on Market for Vancouver West
East Vancouver Real Estate Stats up to and including December 2023
Overall, HPI Price decreased slightly in each market, median price decreased but the average sales price increased in each market. This tells me that some Buyers found some deals, but there were some high end properties bringing up the average. Inventory dropped significantly, as expected.
HPI Price for East Vancouver
*Unfortunately HPI Price can’t be any more specific than Condo/Townhouse/House*
Average Sales Price for East Vancouver
Median Percentage of Original Price for East Vancouver
New Listings for East Vancouver
Total Inventory for East Vancouver
Total Sales for East Vancouver
Sales to Active Ratio for East Vancouver
Median Days on Market for East Vancouver
As always, if you have questions on a particular kind of property or location, get in touch with me!
And if you’re thinking about selling your property, give me a call to chat about value, pricing strategy and the sale process. There are plenty of details to chat about – including timing, value, staging and your potential purchase – so don’t hesitate to contact me if you’d like to get started kristi@realestatevancity.ca or 778-387-7371. The better you understand your current value and what Buyers may be looking for, the more successful your sale. There is a finesse to dealing with an ever-changing market.
The mortgage world is changing constantly these days – fixed rates (which are based on bond yields) are changing all the time and variable rates (based on the Bank of Canada prime rate) are static right now and expected to lower at some point in the new year. Make sure you have a pre-approval set so that your mortgage broker can keep you updated on the best possible rates, and so that you can work quickly if the property you want ends up in a competitive situation (which still happens for the best or lowest priced properties). If you haven’t yet spoken with a mortgage broker, get that process started. It’s helpful to know your options when it comes to owning two properties via a bridge loan, getting a 1 to 3 year mortgage amortization, porting your existing mortgage or understanding how any further changes to interest rates will affect you. Times are changing quickly so you need a broker who takes the time to understand your goals and current financial outlook. Email me if you need a referral to a great mortgage broker.
All the best reaching your 2024 goals!