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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Home Sales Decline as Inventory Rises

Hello Solutions Real Estate Group Community,

Welcome to our latest blog update, where we bring you the freshest insights into Metro Vancouver’s and Fraser Valley’s real estate markets. May has been a month of significant changes that could influence your buying or selling decisions.

Supply: Rising Inventory in Both Regions

One of the most notable trends this month is the significant increase in the number of homes available for sale in both Metro Vancouver and the Fraser Valley.

In Metro Vancouver, according to the Greater Vancouver REALTORS® (GVR), there are currently 13,600 properties listed on the Multiple Listing Service® (MLS®). This represents a substantial 46.3% increase compared to May 2023. Additionally, 6,374 properties were newly listed in May 2024 alone, which is a 12.6% rise from the previous year and a 7% increase compared to the 10-year seasonal average.

In Fraser Valley, the situation is equally dynamic. The Fraser Valley Real Estate Board (FVREB) received 3,926 new listings in May, an increase of 78% compared to last year, although this marks a 22% decrease compared to April 2021. The month ended with total active inventory sitting at 5,868, a 3% decrease compared to April, and 9% less than May of last year.

This rise in inventory is good news for buyers, as it means more options and potentially more negotiating power. For sellers, it suggests a need to be more strategic with pricing and marketing to stand out in a more crowded market.

Demand: Sales Slowdown in Metro Vancouver vs. High Demand in Fraser Valley

In Metro Vancouver, residential sales totaled 2,733 in May 2024, which is a 19.9% drop from May 2023 and a 19.6% decrease from the 10-year seasonal average for May. Andrew Lis, GVR’s director of economics and data analytics, attributes this slowdown to various factors such as higher borrowing costs, economic concerns, and policy changes.

Conversely, Fraser Valley continues to experience extraordinary demand. The FVREB processed 2,951 sales in May, an increase of 267% compared to May 2020 and only a slight 2% decrease compared to April 2024. This near-record high is indicative of the intense buyer interest in the region, driven by increased inventory and ongoing demand.

Prices: Steady Increases Across Both Markets

Despite the slowdown in sales in Metro Vancouver, home prices have continued to see modest increases across different property types:

• Metro Vancouver Detached Homes: The benchmark price is $2,062,600, reflecting a 5.9% increase from May 2023 and a 1.3% rise compared to April 2024.

• Metro Vancouver Apartment Homes: The benchmark price is $776,200, a 2.2% increase from May 2023.

• Metro Vancouver Attached Homes: The benchmark price is $1,145,500, showing a 5.2% increase from May 2023.

In the Fraser Valley, price increases have been even more pronounced:

• Fraser Valley Detached Homes: The benchmark price is $1,323,300, up 2.3% from April 2021 and a significant 33.6% increase from May 2020.

• Fraser Valley Townhomes: The benchmark price is $670,000, up 2.7% from April 2021 and 20.7% from May 2020.

• Fraser Valley Apartments: The benchmark price is $488,500, a 2.0% increase from April 2021 and a 12.6% increase from May 2020.

These price increases amidst declining sales in Metro Vancouver and record-breaking sales in the Fraser Valley suggest that while demand has softened in one area, the overall market remains competitive and prices continue to rise.

Days on Market: What to Expect

In Metro Vancouver, homes are likely to stay on the market longer due to rising inventory and slowing sales. Sellers should prepare for potentially longer selling periods and consider enhancing their home’s appeal through staging, improvements, or strategic pricing.

In the Fraser Valley, homes are selling quickly despite the high inventory. The average number of days to sell a single-family detached home was 14, a townhome was 12 days, and apartments took 20 days on average.

Impact of Recent Bank of Canada Announcement

Last week, the Bank of Canada made a significant announcement that could have a profound impact on the real estate market. The Bank reduced its target for the overnight rate to 4¾%, with the Bank Rate at 5% and the deposit rate at 4¾%. This decision comes amidst continued evidence that underlying inflation is easing, with CPI inflation further dropping to 2.7% in April.

The global economy grew by about 3% in the first quarter of 2024, while Canada’s economic growth resumed at 1.7%, slower than initially forecasted. Despite solid consumption growth and increased business investment, weaker inventory investment dampened overall activity. The labour market remains tight, but wage pressures are gradually moderating.

With these changes, the Bank’s Governing Council felt that monetary policy no longer needs to be as restrictive. This reduction in interest rates could lower borrowing costs for buyers, potentially boosting demand in the housing market. For sellers, this could mean a more favourable selling environment as financing becomes more accessible for prospective buyers.

Read the Bank of Canada Report

The recent interest rate reduction by the Bank of Canada could stimulate buyer interest and activity, making it a potentially opportune time to enter the market. For both buyers and sellers, staying informed about these changes and working with knowledgeable real estate professionals is crucial.

Future Outlook and Relevance for Buyers and Sellers

Looking ahead, the market is expected to continue showing signs of balance with a potential for slower price growth. Buyers who have been waiting on the sidelines may find more favourable conditions this summer. Sellers, on the other hand, should be prepared for a more competitive environment and may need to be flexible with pricing and offers.

The recent interest rate reduction by the Bank of Canada could stimulate buyer interest and activity, making it a potentially opportune time to enter the market. For both buyers and sellers, staying informed about these changes and working with knowledgeable real estate professionals is crucial.

Stay Informed

We’re here to help you navigate these market changes. If you’re considering buying or selling, or just want to understand what these trends mean for you, don’t hesitate to reach out so we can put together a Solution to ensure you reach your Real Estate goals.

Metro Vancouver and Fraser Valley Real Estate Update: May 2024

Home Sales Decline as Inventory Rises

Hello Solutions Real Estate Group Community,

Welcome to our latest blog update, where we bring you the freshest insights into Metro Vancouver’s and Fraser Valley’s real estate markets. May has been a month of significant changes that could influence your buying or selling decisions.

Supply: Rising Inventory in Both Regions

One of the most notable trends this month is the significant increase in the number of homes available for sale in both Metro Vancouver and the Fraser Valley.

In Metro Vancouver, according to the Greater Vancouver REALTORS® (GVR), there are currently 13,600 properties listed on the Multiple Listing Service® (MLS®). This represents a substantial 46.3% increase compared to May 2023. Additionally, 6,374 properties were newly listed in May 2024 alone, which is a 12.6% rise from the previous year and a 7% increase compared to the 10-year seasonal average.

In Fraser Valley, the situation is equally dynamic. The Fraser Valley Real Estate Board (FVREB) received 3,926 new listings in May, an increase of 78% compared to last year, although this marks a 22% decrease compared to April 2021. The month ended with total active inventory sitting at 5,868, a 3% decrease compared to April, and 9% less than May of last year.

This rise in inventory is good news for buyers, as it means more options and potentially more negotiating power. For sellers, it suggests a need to be more strategic with pricing and marketing to stand out in a more crowded market.

Demand: Sales Slowdown in Metro Vancouver vs. High Demand in Fraser Valley

While Metro Vancouver has seen a decrease in demand, the Fraser Valley is experiencing near-record-breaking demand.

In Metro Vancouver, residential sales totaled 2,733 in May 2024, which is a 19.9% drop from May 2023 and a 19.6% decrease from the 10-year seasonal average for May. Andrew Lis, GVR’s director of economics and data analytics, attributes this slowdown to various factors such as higher borrowing costs, economic concerns, and policy changes.

Conversely, Fraser Valley continues to experience extraordinary demand. The FVREB processed 2,951 sales in May, an increase of 267% compared to May 2020 and only a slight 2% decrease compared to April 2024. This near-record high is indicative of the intense buyer interest in the region, driven by increased inventory and ongoing demand.

Prices: Steady Increases Across Both Markets

Despite the slowdown in sales in Metro Vancouver, home prices have continued to see modest increases across different property types:

• Metro Vancouver Detached Homes: The benchmark price is $2,062,600, reflecting a 5.9% increase from May 2023 and a 1.3% rise compared to April 2024.

• Metro Vancouver Apartment Homes: The benchmark price is $776,200, a 2.2% increase from May 2023.

• Metro Vancouver Attached Homes: The benchmark price is $1,145,500, showing a 5.2% increase from May 2023.

In the Fraser Valley, price increases have been even more pronounced:

• Fraser Valley Detached Homes: The benchmark price is $1,323,300, up 2.3% from April 2021 and a significant 33.6% increase from May 2020.

• Fraser Valley Townhomes: The benchmark price is $670,000, up 2.7% from April 2021 and 20.7% from May 2020.

• Fraser Valley Apartments: The benchmark price is $488,500, a 2.0% increase from April 2021 and a 12.6% increase from May 2020.

These price increases amidst declining sales in Metro Vancouver and record-breaking sales in the Fraser Valley suggest that while demand has softened in one area, the overall market remains competitive and prices continue to rise.

Days on Market: What to Expect

In Metro Vancouver, homes are likely to stay on the market longer due to rising inventory and slowing sales. Sellers should prepare for potentially longer selling periods and consider enhancing their home’s appeal through staging, improvements, or strategic pricing.

In the Fraser Valley, homes are selling quickly despite the high inventory. The average number of days to sell a single-family detached home was 14, a townhome was 12 days, and apartments took 20 days on average.

Impact of Recent Bank of Canada Announcement

Last week, the Bank of Canada made a significant announcement that could have a profound impact on the real estate market. The Bank reduced its target for the overnight rate to 4¾%, with the Bank Rate at 5% and the deposit rate at 4¾%. This decision comes amidst continued evidence that underlying inflation is easing, with CPI inflation further dropping to 2.7% in April.

The global economy grew by about 3% in the first quarter of 2024, while Canada’s economic growth resumed at 1.7%, slower than initially forecasted. Despite solid consumption growth and increased business investment, weaker inventory investment dampened overall activity. The labour market remains tight, but wage pressures are gradually moderating.

With these changes, the Bank’s Governing Council felt that monetary policy no longer needs to be as restrictive. This reduction in interest rates could lower borrowing costs for buyers, potentially boosting demand in the housing market. For sellers, this could mean a more favorable selling environment as financing becomes more accessible for prospective buyers.

Future Outlook and Relevance for Buyers and Sellers

Looking ahead, the market is expected to continue showing signs of balance with a potential for slower price growth. Buyers who have been waiting on the sidelines may find more favorable conditions this summer. Sellers, on the other hand, should be prepared for a more competitive environment and may need to be flexible with pricing and offers.

The recent interest rate reduction by the Bank of Canada could stimulate buyer interest and activity, making it a potentially opportune time to enter the market. For both buyers and sellers, staying informed about these changes and working with knowledgeable real estate professionals is crucial.

Stay Informed

We’re here to help you navigate these market changes. If you’re considering buying or selling, or just want to understand what these trends mean for you, don’t hesitate to reach out.

For more information, visit our website at Solutions Real Estate Group or contact us directly.

Warm regards,

John Kemp 
PREC/Founder
Solutions Real Estate Group

Editor's Note:

The Greater Vancouver REALTORS® covers areas including Bowen Island, Burnaby, Coquitlam, Maple Ridge, and more.

The Fraser Valley Real Estate Board covers areas including Abbotsford, Langley, Mission, North Delta, Surrey, and White Rock.

The MLS® Home Price Index (HPI) has been updated to reflect current market conditions based on sales data.

For more detailed statistics and insights, check out the full report from Greater Vancouver REALTORS® and the Fraser Valley Real Estate Board.