Wow! What a month it’s been. The market has picked up really quickly, though the activity isn’t the same across the board; there are still some slower markets and neighbourhoods.
The Bank of Canada kept the prime rate the same this past month. The general consensus is that rates won’t start to drop until the second half of the year, likely in the Fall, and that it will be a slow burn down. Fixed rates have been up and down recently, so make sure you’re working with a broker who is on the ball and can lock in a rate for you when they’re low.
My January has been off to a really busy start! I had a few great clients who were keen find amazing properties, leading to early success in a market that is ramping up quickly. We ended up in 6-offer and 9-offer multiple offer situations and won thanks to my clients preparation and understanding of market dynamics. Despite the multiple offers, we feel like we secured some great units with long term value. It’s always smart to buy at the beginning of a busy market, otherwise you’ll likely get caught up in increasing prices and will end up competing for every property. A few other changes I’m seeing in the market:
- Inventory has increased, especially good inventory – you know, the types of properties buyers get excited about (whether because they’re very well maintained, in great buildings or staged really well).
- The reason for selling has also changed. Last year it felt like every Seller was a Landlord, looking to sell because their costs had increased… so they were motivated, but not that motivated if the price didn’t make sense, which made it hard to come to agreements. This year we’re seeing a big increase in owner occupiers selling because they want to move to a different property. Not only do the properties show better, but we’re seeing more activity in the market because they actually want to move.
- Vancouver has been the first market to pick up (it’s always the last to slow down and the first to pick up) but the areas outside of Vancouver (North Van, Coquitlam, Port Moody, etc) should see more activity in the next few months, as Buyers realize they can’t or don’t want to compete in Vancouver.
- Buyers aren’t really talking about rates. These higher rates are the new norm (at least for now) and Buyers realize that if they want to buy soon, they’ll have to accept these rates.
Some of the slower markets include downtown condos and anything on the higher end of it’s price range. Most of these properties have been sitting on the market for months now, so if you’re looking for a deal, you have to look to those units. Don’t be surprised if the Seller is feeling especially confident though – I’ve submitted a lot of offers recently where the Seller was totally unwilling to negotiate, thinking they would rather wait until the market increases than sell now at what they consider to be a low price.
The bottom of the market is behind us, so if you’re flexible in what you’re looking for, especially if you’re willing to do renos, now is the time to secure something. If you’re looking for an entry level 2 bedroom, 3 bedroom townhouse, or well maintained house, be ready to compete in multiple offer scenarios. A lot of Sellers are delaying the review of offers until after the weekend, but I’ve seen some scenarios where Sellers will review offers anytime, and still receive a handful after their first day of viewings.
Here’s a snippet from the Real Estate Board’s Monthly Update:
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.
There were 3,788 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in January 2024. This represents a 14.5 per cent increase compared to the 3,308 properties listed in January 2023. This was 9.1 per cent below the 10-year seasonal average (4,166).
Across all detached, attached and apartment property types, the sales-to-active listings ratio for January 2024 is 17.2 per cent. By property type, the ratio is 11.9 per cent for detached homes, 22.9 per cent for attached, and 19.9 per cent for apartments.
“Our 2024 forecast is calling for a two to three per cent increase in prices by the end of the year, which is largely the result of demand, once again, butting up against too little inventory,” Lis said. “If the January figures are indicative of what the spring market has in store, our forecast may already be off to an overly conservative start. Markets can shift quickly, however, and we’ll watch the February numbers to see if these early signs of strength continue, or whether they’re a blip in the data.”
Onto the stats:
Vancouver West Real Estate Stats up to and including January 2024
The detached market on the Westside is the slowest market out there, with a drop in HPI price and a longer days on market. High end markets are always the last to pick up, so it will be interesting to see how the next few months go.
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 January 2024
The East Van stats are interesting: not much change in inventory, sales or prices compared to December. Based on the increase in new listings and increase in days on market, it seems like the new properties are selling but the properties that have sat on the market, are still on the market.
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!