Greater Vancouver and Fraser Valley Real Estate Market Comparison: June 2024

Welcome to our monthly real estate market comparison blog! This June, we dive into the dynamic markets of Greater Vancouver and Fraser Valley. Let's explore the key trends, insights, and standout performances in condos, townhouses, and detached homes.

Market Snapshot

Greater Vancouver:

• Sales: 2,398 units (⬇️ -19.2% YoY)

• New Listings: 5,736 properties (⬆️ 7.1% YoY)

• Total Active Listings: 13,478 (⬆️ 35.9% YoY)

• Sales-to-Active Listings Ratio: 17.8% (Balanced Market)

Fraser Valley:

• Sales: 1,252 units (⬇️ -32.1% YoY)

• New Listings: 3,145 properties (⬇️ 0.9% YoY)

• Total Active Listings: 7,124 (⬆️ 33.7% YoY)

• Sales-to-Active Listings Ratio: 17.6% (Balanced Market)

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Property Types Breakdown

Detached Homes:

• Greater Vancouver: Benchmark Price: $2,061,000 (⬆️+3.7% MoM)

• Fraser Valley: Benchmark Price: $1,528,900 (⬆️ 0.5% MoM)

Townhouses:

• Greater Vancouver: Benchmark Price: $1,138,100 (⬇️ -0.5% MoM)

• Fraser Valley: Benchmark Price: $851,100 (⬇️ -0.3% MoM)

Condos/Apartments:

• Greater Vancouver: Benchmark Price: $773,400 (⬇️ -1.1% MoM)

• Fraser Valley: Benchmark Price: $551,100 (⬇️ -0.7% MoM)

Area-Specific Highlights

Greater Vancouver:

• Vancouver West: Detached homes benchmark at $3,560,700 (⬆️ 0.3% MoM)

• Richmond: Detached homes benchmark at $2,197,800 (⬇️ -0.9% MoM)

• Burnaby: Detached homes benchmark at $2,000,000 (⬆️ 0.4% MoM)

Fraser Valley:

• Surrey: Detached homes benchmark at $1,514,500 (⬇️ -0.6% MoM)

• Langley: Detached homes benchmark at $1,637,500 (⬇️ -0.8% MoM)

• Abbotsford: Detached homes benchmark at $1,056,300 (⬆️ 4.0% MoM)

Supply and Demand Dynamics

Supply Side:

In June 2024, both the Greater Vancouver and Fraser Valley markets experienced a substantial influx of active listings, indicative of a shifting market landscape.

• Greater Vancouver: Active listings surged to 14,182, marking a 42% increase compared to June 2023. This significant rise suggests a growing willingness among homeowners to sell, potentially driven by perceived market peaks or economic pressures. The increase in listings provides buyers with a wider array of choices, potentially leading to more competitive pricing and better negotiation opportunities.

• Fraser Valley: The region mirrored this trend with active listings climbing to 8,350, reflecting a 40.5% year-over-year increase. This sixth consecutive month of inventory build-up underscores a robust supply pipeline, which is critical in a balanced market. The surge in listings across both regions is a double-edged sword; while it offers buyers more options, it also means sellers must price competitively and ensure their properties stand out in a crowded market.

Demand Side:

The demand dynamics in both regions have been nuanced, influenced by broader economic conditions, including interest rates and buyer sentiment.

• Sales Declines: The noticeable drop in sales, with Greater Vancouver seeing a -19.1% decrease and Fraser Valley a more pronounced -31.9% drop compared to June 2023, highlights a cautious buyer base. This hesitancy can be attributed to several factors:

  • Interest Rates: Despite the Bank of Canada's rate cut on June 5, which lowered the policy rate by 25 basis points, the anticipated boost in buyer activity did not materialize. This suggests that the rate cut was insufficient to offset concerns about long-term affordability and economic stability.

  • Economic Conditions: Ongoing economic uncertainties, including inflationary pressures and employment concerns, have likely contributed to a more conservative approach from potential buyers.

• Balanced Market Conditions: Despite the decrease in sales, both markets remain balanced, with sales-to-active listings ratios of 17.6% for Greater Vancouver and 16% for Fraser Valley. A balanced market, typically defined by a ratio between 12% and 20%, indicates that the supply of homes is roughly in line with demand, preventing significant price volatility. This balance suggests that while buyers are hesitant, there is still sufficient demand to absorb the increased supply without leading to a sharp decline in prices.

• Buyer Hesitancy: The prevailing buyer hesitancy can also be seen in the time it takes to sell properties. In Fraser Valley, condos are taking an average of 30 days to sell, while townhomes and detached homes are selling in 20 and 22 days, respectively. These metrics indicate a market where properties are still moving, albeit at a slower pace, requiring sellers to be patient and strategic in their pricing and marketing efforts.

Winners:

1. Buyers:

• Increased Inventory: With active listings surging to 14,182 in Greater Vancouver (a 42% increase) and 8,350 in Fraser Valley (a 40.5% increase), buyers have more choices than ever. This abundance in inventory can lead to better price negotiations and more competitive offers from sellers who are keen to stand out in a crowded market .

• More Selection: The significant increase in listings provides a wider array of property types and locations for buyers to choose from, enhancing their chances of finding the ideal property that fits their needs and budget.

2. Resilient Areas:

• Langley: Despite the overall market conditions, Langley has shown resilience. The benchmark price for detached homes in Langley is $1,637,500, marking a 2.3% increase from June 2023. This stability makes Langley an attractive area for buyers looking for steady investment .

• Abbotsford: Abbotsford also demonstrated price stability with the benchmark price for detached homes at $1,056,300, reflecting a 4.0% increase from May 2024. This indicates a healthy demand and confidence in the area, making it a reliable choice for buyers .

Losers:

1. Sellers in High Inventory Areas:

• Surrey: Surrey experienced a noticeable increase in active listings, with a 29.4% rise year-over-year. The benchmark price for detached homes in Surrey decreased by 0.6% from May 2024 to $1,514,500, and the average price saw a significant drop of -12.4% from the previous year. Sellers in Surrey face increased competition, longer time on market, and pressure to reduce prices to attract buyers .

• Richmond: Similar to Surrey, Richmond saw a decline in the benchmark price for detached homes by 0.9% from May 2024 to $2,197,800. The high inventory levels in Richmond mean that sellers need to be more competitive with their pricing and offer incentives to attract buyers. Additionally, the average price dropped by -11.9% compared to the previous year, reflecting the challenges sellers face in a saturated market .

Sales Performance by Property Type

Fraser Valley:

The Fraser Valley market shows a clear delineation in the time it takes to sell different types of properties. Here's a closer look at the average days on the market for various property types in June 2024:

• Condos: Condos took the longest to sell, averaging 30 days on the market. This extended timeframe can be attributed to the increased inventory and buyer hesitancy seen across the board.

• Townhomes: Townhomes were somewhat more in demand, taking an average of 20 days to sell. This quicker turnaround time indicates a stronger interest in this property type, possibly due to its balance between affordability and space.

• Detached Homes: Detached homes took an average of 22 days to sell, reflecting stable interest despite economic uncertainties. This category remains attractive for buyers seeking more space and privacy .

Greater Vancouver:

The sales performance in Greater Vancouver highlights the relative attractiveness of condos and townhouses compared to detached homes:

• Condos: Condos continue to be popular, largely due to their affordability relative to other property types. The benchmark price for an apartment in Greater Vancouver was $711,300, down -1.1% from May 2024, which keeps them within reach for many buyers.

• Townhouses: Townhouses also remain appealing, with a benchmark price of $998,400, down -0.5% from May 2024. The price drop, though slight, makes townhouses an attractive middle ground between condos and detached homes.

• Detached Homes: Detached homes, with a higher benchmark price of $1,834,100 (unchanged from May 2024), tend to stay on the market longer as buyers weigh the higher costs. However, well-priced properties are still selling relatively quickly .

Detailed Analysis:

Fraser Valley:

1. Condos:

   • Average Days on Market: 30 days.

   • Price Dynamics: The benchmark price for condos in the Fraser Valley was $551,100, down -0.7% from May 2024. This slight decrease, combined with the longer selling time, suggests a cautious approach from buyers in this segment .

2. Townhomes:

   • Average Days on Market: 20 days.

   • Price Dynamics: Townhomes had a benchmark price of $851,100, down -0.3% from May 2024. The quicker sales time reflects stronger demand, as buyers seek the space and amenities of townhomes without the higher costs of detached homes .

3. Detached Homes:

   • Average Days on Market: 22 days.

   • Price Dynamics: The benchmark price for detached homes in the Fraser Valley was $1,528,900, down -0.1% from May 2024. This slight decline and relatively fast sales indicate a steady demand, even in a high-inventory market .

Greater Vancouver:

1. Condos:

   • Affordability Factor: With the benchmark price at $711,300, condos remain a viable option for more buyers, especially first-time homeowners or those looking to downsize. The modest price drop of -1.1% from May 2024 reflects a stable yet cautious market.

   • Market Performance: Despite economic uncertainties, condos are selling well, thanks to their lower price points compared to other property types .

2. Townhouses:

   • Middle Ground: Townhouses, priced at $998,400, offer more space than condos while remaining more affordable than detached homes. The small price decrease of -0.5% from May 2024 suggests they are a stable investment choice.

   • Buyer Attraction: The combination of space, amenities, and relatively lower prices makes townhouses a consistently attractive option .

3. Detached Homes:

   • Higher Costs: With a benchmark price of $1,834,100, detached homes are the most expensive property type. This higher cost often translates to longer decision-making times for buyers.

   • Stable Demand: Even with a higher price tag, well-priced detached homes are still finding buyers relatively quickly, indicating a steady demand for premium properties .

Key Insights

Market Adaptation:

Both Greater Vancouver and Fraser Valley markets are adapting to increased inventory levels and economic uncertainties, with varied impacts on different property types. Condos, with their lower prices, continue to attract buyers despite taking longer to sell in the Fraser Valley.

Strategic Pricing:

For sellers, strategic pricing remains crucial. In high-inventory markets, pricing competitively can make the difference between a quick sale and a prolonged listing period. This is particularly important in areas like Surrey and Richmond, where increased competition and slight price drops necessitate more aggressive pricing strategies.

Buyer Opportunities:

Buyers benefit from the increased inventory and balanced conditions, offering them a prime opportunity to explore diverse options and negotiate favorable terms. The expanded inventory allows for more thorough due diligence, particularly in the condo and townhouse segments where price decreases are more noticeable.

Economic Vigilance:

Both buyers and sellers need to remain vigilant regarding economic indicators and policy changes, such as interest rate adjustments and inflation trends. These factors can significantly impact market dynamics and decision-making processes. Despite the Bank of Canada's rate cut in June, the boost to buyer activity was modest, indicating a need for ongoing economic watchfulness.

Supply and Demand Dynamics:

• Supply Side: Both regions saw significant increases in active listings, providing buyers with more options and potentially easing price pressures. Greater Vancouver saw a 42% increase in active listings, while Fraser Valley experienced a 40.5% increase.

• Demand Side: Sales declines in both regions reflect buyer hesitancy, influenced by economic conditions and interest rates. Greater Vancouver saw a 19.1% decrease in sales, and Fraser Valley saw a -31.9% drop. Despite this, both markets exhibit balanced conditions, with sales-to-active listings ratios of 17.6% and 16%, respectively.

Sales Performance by Property Type:

• Fraser Valley:

  • Condos: 30 days on market, benchmark price $551,100 (⬇️ -0.7% MoM)

  • Townhomes: 20 days on market, benchmark price $851,100 (⬇️ -0.3% MoM)

  • Detached Homes: 22 days on market, benchmark price $1,528,900 (⬇️ -0.1% MoM)

• Greater Vancouver:

  • Condos: Benchmark price $711,300 (⬇️ -1.1% MoM)

  • Townhouses: Benchmark price $998,400 (⬇️ -0.5% MoM)

  • Detached Homes: Benchmark price $1,834,100 (0% MoM)

Future Market Direction

Balanced Market Conditions:

With balanced market conditions and steady inventory levels, both Greater Vancouver and Fraser Valley markets are expected to maintain stability in the coming months. The increased inventory provides buyers with ample choices and negotiation power, while the balanced sales-to-active listings ratios suggest a stable environment without significant price volatility.

Buyer and Seller Advice:

• Buyers: This is a favorable time to explore options and negotiate favorable terms. Increased inventory means more choices and potential for better deals.

• Sellers: It is crucial to price competitively and leverage strategic marketing to stand out. In high-inventory areas, well-priced properties are still finding buyers relatively quickly.

Economic Vigilance:

Both buyers and sellers should stay informed about economic indicators and policy changes. Interest rate adjustments, inflation trends, and broader economic conditions will continue to play significant roles in market dynamics.

Interactive Insights:

• Price Trends Over Time: Monitoring price trends over time helps buyers and sellers make informed decisions.

• Sales-to-Active Listings Ratio: Understanding this ratio provides insights into market conditions and potential shifts between buyer's and seller's markets.

Conclusion

The Greater Vancouver and Fraser Valley real estate markets displayed resilience in June 2024, maintaining balanced conditions despite economic pressures and changing buyer sentiments. With increased inventory and stable prices, this is a favorable time for buyers to explore their options and for sellers to strategize effectively to stand out in the market.

Stay Informed: For more detailed data and personalized advice, feel free to contact our expert team. Your dream home or perfect investment is just a consultation away!

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