Vancouver Real Estate Market Update – July 2024

According to Edge Realty Analytics’ July Metro Deep Dive, Vancouver’s real estate market is exhibiting mixed trends, as home sales rise, but levels of inventory are building up.

Home Sales Experience Minor Growth

Vancouver’s June home sales rose by 1.2% m/m, following a significant 7% decrease in May. Despite the improvement in sales, they remain significantly lower than previous years. Year-over-year, sales are down 19.1% and are 30% below the averages for the past decade. Condo sales are down by nearly 21% compared to the same period in last year. Overall, all segments of the market are experiencing sales that are approaching decade lows.

Source: Edge Realty Analytics

New Listings Drop

Seasonally adjusted new listings increased by 4.5% m/m, and 7% compared to last year. This rise in new listings led to an increase in sales, but a decrease in the ratio between new listings and sales, which now stands 44%. This ratio is historically associated with an annual decline of house prices of approximately 5%.

Source: Edge Realty Analytics

Stocks are on the rise

Active listings have increased by 42% in Vancouver y/y. The condo segment has seen a 54% increase. Inventory levels are increasing in both single-family homes and condos, contributing to an overall increase of available properties.

Source: Edge Realty Analytics

House Prices See a Slight Drop

In June, the seasonally adjusted house price decreased by 0.2% m/m. This modest drop reflects broader market dynamics, influenced by the rising inventory and shifting sales-to new listings ratio.

Source: Edge Realty Analytics

Construction Activity Surges

The number of dwellings being constructed increased by 1.3% m/m during May. The condo segment saw a 1.8% increase m/m, while rental properties grew 0.6% m/m. The single-family segment, on the other hand, has remained stagnant and is now down by 16% year/year. Despite the high level of housing starts in the past year, over 90% of all new construction has been concentrated in apartment segments (condos and rental), while single-family start are at their lowest point in 35 years.

Source: Edge Realty Analytics