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.

Exploring Various Ownership and Management Structures in Real Estate

Freehold Ownership:

This is the most common and comprehensive form of real estate ownership in British Columbia. With freehold ownership, you have full control and ownership of the property, including the land and any buildings or structures on it, subject to any governmental or municipal restrictions and regulations.

Advantages:

• Complete ownership: With freehold ownership, you have full control and ownership of the property, including the land and any buildings or structures on it, giving you the freedom to make decisions about the property's use and improvements.

• Long-term appreciation: Freehold properties often have greater potential for long-term appreciation and higher resale value compared to leasehold properties.

• No lease restrictions: Freehold property owners are not subject to lease restrictions or renegotiation of lease terms, providing more stability and predictability.

• Easier financing: It is generally easier to secure financing for a freehold property compared to a leasehold property, as lenders are more likely to provide mortgages for properties with full ownership rights.

Disadvantages:

• Higher initial cost: Freehold properties tend to have higher purchase prices compared to leasehold properties due to the ownership of the land.

• Full responsibility: Freehold owners are solely responsible for all maintenance, repairs, taxes, and insurance related to the property, which can be time-consuming and costly.

  
  

Leasehold Ownership:

Leasehold ownership is a type of real estate ownership where you have the right to use and occupy a property for a specific period, as outlined in a lease agreement with the freehold owner. Leasehold properties are usually found on First Nations reserves, government-owned land, or properties owned by institutions like universities. Lease terms can vary, but they are typically 50, 75, or 99 years in length.

Advantages:

• Lower initial cost: Leasehold properties typically have lower purchase prices compared to freehold properties, making them more affordable for some buyers.

• Access to desirable locations: Leasehold properties can provide access to desirable locations, such as waterfront properties or properties on government-owned land, where freehold ownership may not be possible.

• Limited responsibility for land: Leasehold owners are generally not responsible for the land itself, as this remains the responsibility of the freehold owner.
  

Disadvantages:

• Limited ownership duration: Leasehold ownership is limited to the term of the lease agreement, which can vary but is typically 50, 75, or 99 years. As the lease term nears its end, the property value may decrease, and renewing the lease or purchasing the freehold may be costly or challenging.

• Lease restrictions: Lease agreements may have restrictions on property use, modifications, or transfers, which can limit the owner's ability to fully enjoy or control the property.

• Lease renegotiation: Lease agreements must be renegotiated or extended at the end of the term, which can be uncertain and potentially costly.

• Financing challenges: Securing financing for leasehold properties can be more challenging than for freehold properties, as lenders may have stricter requirements for the remaining lease term and other factors.

  
  

Strata Ownership:

Also known as condominium ownership, strata ownership involves owning an individual unit within a larger complex or building. Strata owners have title to their specific unit and share common areas and facilities with other unit owners. Strata ownership is governed by the Strata Property Act of British Columbia, which establishes rules and regulations for strata corporations, including bylaws and the management of common property.

Unique Strata characteristics:

• Residential Strata: These are the most common types of strata properties and include apartment-style condominiums, townhouses, and duplexes. In a residential strata, individual owners hold title to their specific units and share ownership and responsibility for common areas and facilities.

• Mixed-Use Strata: Mixed-use strata developments combine residential and commercial units within the same complex. These properties might include a combination of apartment units, retail spaces, offices, and other commercial spaces. Owners share common areas and facilities, and the strata corporation is responsible for managing both residential and commercial aspects of the property.

• Commercial Strata: Commercial strata properties consist entirely of commercial units, such as office buildings, retail spaces, or industrial complexes. Like residential strata properties, commercial strata owners share ownership and responsibility for common areas and facilities.

• Bare Land Strata: A bare land strata property is a type of strata development where individual owners own a specific parcel of land within the development rather than a constructed unit. Owners can build their own detached home or other structure on their lot, subject to the bylaws and regulations of the strata corporation. Bare land strata properties are unique because they provide the benefits of strata living while also allowing for more customization and individual property control.

• Sectioned Strata: In a sectioned strata, different sections within the strata property have their own separate bylaws, budgets, and governance structures. This type of ownership is often found in mixed-use developments or properties with distinct components, such as a high-rise tower and a townhouse complex. Each section operates somewhat independently while still being part of the larger strata corporation.

• Air Space Parcel Strata: An air space parcel strata is a more complex form of strata ownership where the land and buildings are divided into separate air space parcels, each with its own strata plan. These parcels may be stacked vertically or horizontally and can include different types of strata properties, such as residential, commercial, and institutional spaces. Air space parcel stratas allow for the independent ownership and management of separate parts of a development while still sharing certain common areas and facilities.

Each type of strata ownership has its unique features and characteristics, but all strata properties in British Columbia are governed by the Strata Property Act, which establishes the rules and regulations for strata corporations, including bylaws, management of common property, and the responsibilities of owners and tenants.

Self-Managed Strata Properties:

In a self-managed strata property, the owners collectively take on the responsibilities of managing the property without the assistance of a professional strata management company. This approach typically involves the establishment of a strata council made up of volunteer owners who handle the day-to-day operations, decision-making, and financial management of the strata property.

Advantages:

• Cost Savings: Self-management can lead to cost savings, as owners do not have to pay for the services of a professional strata management company.

• Direct Control: Owners have direct control over the decision-making process, which can result in more responsive and efficient management.

• Community Engagement: Self-management can foster a sense of community among owners, as they work together to maintain and manage the property.
  

Disadvantages:

• Time and Effort: Self-management can be time-consuming and labor-intensive, as owners must handle all administrative, financial, and maintenance tasks.

• Limited Expertise: Owners may lack the necessary expertise in property management, legal, or financial matters, which could lead to potential issues or conflicts.

• Inconsistent Management: Self-management can result in inconsistent management practices, as the volunteer strata council may change frequently, leading to varying levels of effectiveness and commitment.
  

Strata Manager-Managed Properties:

In a strata manager-managed property, the owners hire a professional strata management company to handle the day-to-day operations, decision-making, and financial management of the property. The strata manager acts on behalf of the owners and follows the directions of the strata council.

Advantages:

• Professional Expertise: Strata management companies bring professional expertise in property management, legal, and financial matters, which can result in more effective and efficient management.

• Time Savings: Hiring a strata manager can save time for the owners, as they do not have to handle the administrative, financial, and maintenance tasks themselves.

• Consistent Management: Strata managers can provide consistent management practices, reducing the potential for fluctuations in effectiveness or commitment that may occur with a volunteer strata council.
  

Disadvantages:

• Cost: Hiring a professional strata management company can be more expensive compared to self-management, which may result in higher strata fees for the owners.

• Less Direct Control: Owners may have less direct control over the decision-making process, as the strata manager is responsible for implementing the strata council's directions.

• Potential for Miscommunication: There can be potential for miscommunication or disagreements between the strata manager and the owners, which could impact the overall management of the property.

A potential owner should consider factors such as the size and complexity of the strata property, the level of involvement they are willing to commit to, and their preference for professional expertise versus direct control when making a decision. Consulting with a real estate professional can provide valuable insights and guidance.

Co-operative Ownership:

In a co-operative ownership arrangement, individuals own shares in a corporation that owns the real estate property. Shareholders have the right to occupy a specific unit within the co-operative complex but do not have direct ownership of the real estate. Co-operatives are governed by their own set of bylaws, and the shareholders elect a board of directors to manage the property.

Fractional Ownership:

Fractional ownership is a type of shared ownership in a property, where several individuals or entities own a portion of the property, typically in the form of shares or percentages. This type of ownership is common in vacation properties, where the owners can use the property for a certain amount of time each year based on their ownership share.

Tenancy in Common:

Tenancy in common is a form of shared ownership where multiple parties hold an undivided interest in a property. Each owner has a separate and distinct title to their share of the property, and they can sell or transfer their interest without the consent of the other owners. Upon the death of an owner, their share in the property passes to their heirs or beneficiaries.

Joint Tenancy:

Joint tenancy is another form of shared ownership where two or more individuals own a property with equal rights and interests. Unlike tenancy in common, joint tenants have the right of survivorship, which means that if one joint tenant dies, their interest in the property automatically passes to the surviving joint tenant(s).

Duplex properties: 

Duplexes, as they are commonly referred to consist of two separate residential units within a single building, can have different ownership options and structures in British Columbia, Canada. The most common forms of ownership for duplex properties are:

1. Fee Simple (Freehold): In this scenario, one owner holds the title to the entire duplex property, including both units and the land. The owner may choose to live in one unit and rent out the other or rent out both units as an investment property. In this case, there is no division of ownership between the two units, and the owner is responsible for the maintenance and upkeep of the entire property.

2. Strata Title (Condominium Ownership): A duplex can be set up as a strata property, where each unit is individually owned, and the owners share the responsibility for the common elements, such as the roof, exterior walls, and shared outdoor spaces. The duplex would be governed by the Strata Property Act and managed by a strata corporation. Each owner holds title to their respective unit, and the strata corporation is responsible for maintaining and managing the common property, enforcing bylaws, and collecting strata fees for shared expenses.

3. Tenancy in Common: Tenancy in common is a form of shared ownership where two or more individuals hold an undivided interest in the duplex property. Each owner has a separate and distinct title to their share of the property (i.e., one unit in the duplex), and they can sell or transfer their interest without the consent of the other owner(s). Upon the death of an owner, their share in the property passes to their heirs or beneficiaries.

4. Joint Tenancy: Joint tenancy is another form of shared ownership where two or more individuals own the duplex property with equal rights and interests. Unlike tenancy in common, joint tenants have the right of survivorship, which means that if one joint tenant dies, their interest in the property automatically passes to the surviving joint tenant(s).

5. Co-ownership Agreement: In some cases, the owners of a duplex property may choose to create a co-ownership agreement, which outlines the rights and responsibilities of each owner, including property maintenance, expenses, and decision-making processes. This type of agreement can provide a more flexible ownership structure and can be customized to suit the specific needs and preferences of the property owners.

Each ownership option and structure for duplex properties has its unique features, benefits, and potential drawbacks.

As we navigate through the complexities of the real estate landscape, it's crucial to stay informed about market trends and shifts. April brought forth notable developments in the Greater Vancouver real estate market, offering insights that both buyers and sellers should be aware of.

Inventory Surge:
The inventory of actively listed homes for sale on the MLS® in Metro Vancouver saw a significant increase in April, reaching heights not seen since the summer of 2020. With a +42% year-over-year rise, breaching the 12,000 mark, this surge indicates a shifting landscape for buyers and sellers alike.

Steady Sales Activity:
Despite the surge in inventory, residential sales in the region experienced a modest increase of +3.3% compared to April 2023. However, this figure was -12.2% below the 10-year seasonal average, reflecting the evolving dynamics of the market.

Market Dynamics:
Andrew Lis, GVR’s director of economics and data analytics, notes that while many anticipated higher inventory levels with aggressive rate hikes by the Bank of Canada, the climb has been steadier than expected. Surprisingly, demand remains robust, and homeowners have been reluctant to sell, even amidst the highest borrowing costs in over a decade.

New Listings and Total Inventory:
In April 2024, 7,092 properties were newly listed for sale, marking a substantial +64.7% increase from the previous year. The total number of properties listed for sale reached 12,491, up +42.1% from April 2023. These figures underscore the growing options available to prospective buyers.

Sales-to-Active Listings Ratio:
The sales-to-active listings ratio for April 2024 stands at 23.5%, signalling a market favouring neither buyers nor sellers. However, segmented by property type, detached homes exhibit a ratio of 17.6%, while attached homes and apartments show ratios of 31.0% and 26.0%, respectively.

Price Trends:
Despite the increase in inventory, home prices continue to climb across most segments. Detached homes saw a benchmark price of $2,040,000, representing a +6.3% increase from April 2023. Apartments, however, experienced a slight decline in prices, likely influenced by higher mortgage rates and increased inventory levels.

Stability in Median Days on Market (DOM): While changes unfold in sales and inventory levels, the median DOM remains stable at 11 days. This metric, consistent with historical trends over the past three years, underscores the efficiency of transactions within the market and reflects strategic pricing by sellers and sustained buyer interest.

Where there is change there is opportunity and the Greater Vancouver real estate market in April 2024 presents both challenges and opportunities for buyers and sellers alike. With inventory levels rising and sales momentum continuing, navigating this dynamic landscape requires expert guidance and strategic decision-making.

Reach out to your trusted Solutions Real Estate Agent today to leverage their expertise and maximize your success in this evolving market. Whether you're buying, selling, or investing, our team is here to ensure you achieve your real estate goals with confidence and clarity.

Jiffy Move
778-397-6638
https://www.jiffymove.com/

Let Us Move
Bryan Way: 778-889-5518
http://letusmove.ca/
Above 2 companies recommended by Owners/Realtors of Keller Williams VanCentral

Greenwood Movers
604-512-5180
One of the owners of my brokerage recommends this group.
"Well priced and great service 604-512-5180 I've recommended them dozens of time and everyone loves them"  

Smart Choice Moving
604-828-9718
* a Korean moving company that my one of my clients used. Hard workers but movers may not speak English very well however owner of company can communicate well. Highly recommended in the Korean community.  

E-Z Moves
Abdul
(778) 317-8484
https://ezmovesco.com/
Recommended by our colleague Karnvir Tumber
“They’ve done a few of my moves, priced well”  

Frank Moving Company
(604)710-8312
Recommended by my colleague Gary Dhaliwal
“been using him for 13 years”  

Tiger Mover
(604) 838-8250
Recommended by our colleague Vijay Singh
“his name is Tiger and he is a very good mover”  

Honest Moving
Contact: ADA
Mobile: 604-783-1889
http://www.honestmoving.ca/
*Used by client C.W. when he moved from Vancouver to Richmond.
Per C.W.: They have tiered options. Larger the vehicle higher the cost. Small move should be minimal. They were great. Used them twice. Guys work hard and non stop.

Andrew McIntosh
Partner
Cassidy Law LLP


T 604.523.7098 (direct)
E mcintosh@cassadylaw.com
W https://cassadylaw.com/people/andrew-mcintosh/

T 604.523.7090 (office)

Andrew McIntosh joined Cassady in 2011 having previously practised as a solicitor in England for 13 years where he focused primarily on residential and commercial real estate. Andrew immigrated to Canada in 2007 and, in an effort to immerse himself into Canadian life, initially obtained employment as a Zamboni driver before soon

Edwin Chan

Edwin Chan Law Corporation

MetroTower 2
26th Floor – 4720 Kingsway
Burnaby, BC V5H 4N2

Phone: (778) 374-1736
Fax: (778) 331-3898
Email: esc@edchan.ca

his office is in Metro town. Very approachable and knowledgeable
http://www.edchan.ca
* several clients have used Edwin Chan. I often call him for questions.

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Associate Counsel
Clark Woods LLP

P: 604.330.1777
F: 1.888.819.2933
E: keith@clarkwoods.ca

Second Floor
946 Brunette Avenue
Coquitlam, BC, V3K 1C9
https://clarkwoods.ca/

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Garton & Harris
1542 Prairie Ave, Port Coquitlam, BC V3B 1T4
o. 468-8900
w. https://gartonandharris.com

* Garton & Harris has completed the files of many Realtors at my brokerage.

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Spagnuolo & Company Lawyers
#300-906 Roderick Avenue
Coquitlam, BC V3K 1R1

Tel. 604-527-4242
Fax: 604-527-8976
https://www.bcrealestatelawyers.com
* several clients have used Spagnuolo

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Thershan Nainaar
Collingwood Law Office
260-3631 No. 3 Rd, Richmond, BC V6X 2B9

D: 778-945-0145
E: Tnainaar@collingwoodlawoffice.com
https://www.collingwoodlawoffice.com/team