We are into the Spring Market. It’s definitely an interesting market – this is not a market to make any assumptions.
The Bank of Canada kept the prime rate the same today (March 6th) which was expected. Inflation numbers did drop from 3.4% to 2.9% from December to January, so we’re on our way to the 2% goal, so rate decreases later this year are likely, though the Bank of Canada isn’t making any promises. 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.
The Government announced their new budget last week which stipulates a change to the First Time Home Buyers Property Transfer Tax. Previously First Time Home Buyers would get an exemption up to $500k (partial exemption up to $550k) but that has been increased to $835k (partial exemption up to $860k). This means there is up to $8000 in savings for first time Buyers purchasing between $500k and $835k. This change takes affect April 1st.
The Federal Government also announced that the Foreign Buyers Ban would be extended another 2 years, which will take us to December 2026. This hasn’t had much of an effect on the market aside from high end properties on the West Side and pre-sale developments.
February was another busy month for sales. Lots of new listings but also lots of Buyers looking to get their search started. Pricing strategy is all over the place: some properties are priced high and sit on the market, some are priced low for multiple offers, though pricing low isn’t leading to tons of offers / unexpectedly high prices. At the end of the day – if you’re a Buyer and you like a property, take steps to pursue it – I’ve seen some good properties sell for less than anticipated with few offers or no competition. If it doesn’t work out then it wasn’t meant to be, but the Buyers who are successful are the Buyers who are making moves. It seems like a lot of Buyers are still biding their time, so I anticipate that April and May will see an increase in the number of sales and competition.
We’re still seeing a lot of landlord sales these days – years of higher rates take their toll on any investors bottom line, but we’re going to start to see a lot of properties listed because Sellers have bought their next property and are finally ready to make a move after waiting out the market the last year, so the new listings should continue through to July.
Here’s a snippet from the Real Estate Board’s Monthly Update:
There were 4,560 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in February 2024. This represents a 31.1 per cent increase compared to the 3,478 properties listed in February 2023. This was 0.2 per cent below the 10-year seasonal average (4,568).
Across all detached, attached and apartment property types, the sales-to-active listings ratio for February 2024 is 22.4 per cent. By property type, the ratio is 16 per cent for detached homes, 27.9 per cent for attached, and 25.9 per cent for apartments.
Sales of detached homes in February 2024 reached 560, an 8.3 per cent increase from the 517 detached sales recorded in February 2023. The benchmark price for a detached home is $1,972,400. This represents a 7.2 per cent increase from February 2023 and a 1.5 per cent increase compared to January 2024.
Sales of apartment homes reached 1,092 in February 2024, a 17.7 per cent increase compared to the 928 sales in February 2023. The benchmark price of an apartment home is $770,700. This represents a 5.6 per cent increase from February 2023 and a 2.5 per cent increase compared to January 2024.
Attached home sales in February 2024 totalled 403, a 10.1 per cent increase compared to the 366 sales in February 2023. The benchmark price of a townhouse is $1,094,700. This represents a 4.2 per cent increase from February 2023 and a 2.6 per cent increase compared to January 2024.
Onto the stats:
Vancouver West Real Estate Stats up to and including February 2024
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 February 2024
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 later this year. Make sure you have a pre-approval set so that your mortgage broker can keep you updated on the best possible rates and can work quickly if the property you want ends up in a competitive situation. 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!