The Market is slow but should you act fast?

Market Overview

The Vancouver real estate market continues to navigate a challenging landscape. In June, we saw 2,418 home sales, marking a 19.1% decrease from the same time last year. This was also 23.6% below the 10-year seasonal average. While these numbers might seem concerning, they also highlight some interesting opportunities.

Increased Listings and Inventory

New listings in June were up by 7% compared to last year, with 5,723 homes added to the market. The total number of properties listed for sale reached 14,182, a significant 42% increase from June 2023. This means more choices for buyers, providing them with a broader selection and driving the market towards balanced conditions.

Barton's observation

• The number of new listings is still rising but at a decreasing rate. I think this suggests that potential sellers will hold back plans to sell their homes because they want to avoid competition or they are still on a vacation. It’s harder to sell when there are already a few other similar properties in your neighbourhood. Take a look at the newly completed building at Concord Brentwood Hillside! Certain areas are tougher to sell.

Benchmark Prices

The benchmark price for all residential properties in Metro Vancouver is currently $1,207,100. Here’s a closer look at the benchmark prices for different property types:

? Detached Homes: $2,061,000 (up 3.7% from June 2023)

? Townhomes: $1,138,100 (up 3% from June 2023)

? Apartments: $773,400 (up 1% from June 2023)

Observation 2

• Since the beginning of the summer, real estate sales have been lagging behind, and we are not experiencing the usual ‘spring & summer real estate market frenzy.’ In fact, only 20.8% of residential properties were sold over asking compared to 41% at the same time last year. Great opportunities for buyers!

Sales-to-Active Listings Ratio

The overall sales-to-active listings ratio for June was 17.6%. Breaking it down by property type, detached homes had a ratio of 13.1%, attached homes 21.1%, and apartments 20.3%. Generally, a ratio between 12% and 20% indicates a balanced market, so we are seeing stability across different property types.

Observation 3

• Higher inventory counts and slower sales are the perfect recipe for slower price growth. Together with higher borrowing costs and tougher rules for homeowners, these policies might have a negative effect on real estate prices. Could this mean that sellers are more open to negotiating? I think so!

For Buyers:

The current market condition favours the buyer. Inventory level is high and demand is low. If you see something you like, it is worth a try since there won't be a ton of bidding and competition. Check with a realtor regarding the property price!

For Sellers:

Selling a home at the current market will require additional marketing effort. You will need more time exposure on the market. Price your property reasonably and it will sell.

If you’re thinking about buying or selling a home, now is a great time to explore your options. With increased listings and more choices available, you can find the perfect property. Reach out to me for personalized advice and assistance. You can contact me at 604-715-5568 or [email protected]. Let’s make your real estate dreams a reality!