Vancouver Housing Market is off to a strong start

January saw a significant increase in home sales, marking a shift towards a seller-market. While the level of activity varied across different areas, the general trend pointed to a rise in sales, reflecting a resurgence in buyer interest. Although the number of new listings was somewhat lower than historical norms, it still played a role in shaping a vibrant market environment. The expectation of an approaching conclusion to the rate hike cycle introduces an element of optimism, hinting at a possible surge in engagement from both buyers and sellers in the second half of the year.

What is going on so far in the real estate market?

"It’s hard to believe that January sales figures came in so strong after such a quiet December, which saw many buyers and sellers delaying major decisions. If sellers don’t step off the sidelines soon, the competition among buyers could tilt the market back into sellers’ territory as the available inventory struggles to keep pace with demand." Andrew Lis, REBGV director of economics and data analytics

Despite a stronger overall January market. Detached houses in most areas still lags behind. In the Eastside of Vancouver, 21% less homes were sold in January than December. In Vancouver Westside, houses are selling on average 5% below list price.

Strategic Insights for Buyers and Sellers

• Buyers: Research and PatienceTake the time to thoroughly research the market trends and property values in your desired areas. Patience is key; don't rush into a purchase without understanding the long-term implications, especially in a market that's showing signs of shifting dynamics.
• Sellers: Realistic PricingIn a market that's potentially moving towards a buyer's market, it's crucial to price your property realistically. Overpriced homes can linger on the market, so consult recent sales and market trends to set a competitive price. However, from word on the street, the market is reigniting due to recovered buyer’s confidence.
• Investors: Rent is set to increase in 2024In 2024, rental prices are set to rise but at a more gradual pace than before. Tight vacancy rates from 2023 are predicted to persist, influencing prices. Yet, as interest rates drop, the rental market might cool off slightly as potential first-time homebuyers transition out of renting.

• Do not try to time the market perfectly but rather focusing on the long-term potential of your investment. Real estate should be viewed as a long-term investment, and the current trends or temporary market dips shouldn't dissuade a sound investment decision based on thorough research.

Market Stats

In Greater Vancouver,

Sales Increase: Residential sales in January 2024 saw a substantial increase of 38.5% compared to January 2023, although still 20.2% below the 10-year seasonal average.

2. New Listings Uptick: New listings in January 2024 rose by 14.5% year-over-year, yet were 9.1% below the 10-year seasonal average, indicating a slow start in inventory replenishment.

3. Inventory Levels: Total properties listed on the MLS? system in January 2024 were 9.8% higher than in January 2023, showing a gradual increase in inventory.

4. Sales-to-Active Listings Ratio: The overall ratio for January 2024 was 17.2%, suggesting a balanced market but leaning towards a seller's market, especially in the attached (22.9%) and apartment (19.9%) segments.

5. Price Trends: The MLS? Home Price Index composite benchmark price for all residential properties in January 2024 showed a 4.2% increase over January 2023, yet a slight decrease of 0.6% compared to December 2023, reflecting a stable but adjusting market.

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