BC’s Quarterly Market Overview: Q2 2024

Edge Realty Analytics reports that the real estate market in BC showed mixed signals in Q2 of 2024.

Sales

There was a modest increase quarter-over quarter of 1.2%. This indicates some recovery or stabilization in comparison to the previous quarter. Sales were down 13.3% year-over year, indicating that the economy is slowing.

Listings

New listings increased by 3.1% in a quarter and by 19.0% over the past year as more owners entered the market.

Active listings grew by 7.8% over the last quarter and 40.3% in comparison to the previous year. This significant increase in active listing points to an increasing inventory that may provide more choices for buyers, but also indicates properties are staying longer on the market.

Sales-to-New Listings Ratio

The ratio decreased slightly from 46.3% to 45.3% during Q2 2024. 

Months of Inventory

The months of inventory (or how long it would be before all the homes currently on the market sold if no new ones were listed) increased from 5.6 to 5.8 during Q2 2024. This indicates that buyers have more options and sellers need to price their homes accordingly.

Prices

Prices fell by 0.6% over the past quarter and by 1.0% over the last year. The small decline indicates that prices aren’t falling dramatically but there is some downward force, possibly due the increased supply and slower sale.

Construction

The number under construction has increased by a remarkable 13.8% in the last year. This shows a continued belief in future demand, and a commitment to address housing supply issues.

Economic Indicators

Unemployment Rate

The unemployment rate decreased slightly from 5.5% to 5.2% between Q1 and Q2 2024. For reference, Canada’s unemployment rate overall in June was 6.4%.

Mortgage Arrears

Mortgage arrears rose from 0.15% Q1 2024, to 0.16% Q2 2024. The rise in arrears is not large, but it could indicate financial stress among some homeowners.

Population Growth

The population grew 0.7% quarter-overquarter and 3.3% year-overyear.

Rentals

According to the July 2024 estimate Rentals.caVancouver and Burnaby have the highest average rents of one- and two bedroom rentals.

Vancouver has seen a rise in rental prices from month to month. One-bedroom apartments increased by 2.0%, to $2.724; and two-bedrooms apartments by 0.5%, to $3.648. Rents for two-bedroom and one-bedroom apartments decreased by 7.5% and 5.6% respectively.

Burnaby’s rental prices have seen a slight decrease. Rents for one-bedroom apartments decreased by 0.1% from month to month to $3.543, and rents for two-bedroom apartments fell by 0.9%, to $3.183. Year-over-year rents for a one-bedroom apartment decreased by 1.4%, and rents for a two-bedroom apartment by 3.9%.

Victoria’s rental prices have consistently increased. Two-bedroom apartments in Victoria rose by 0.5% and one-bedroom units by 0.4%. Rents for one-bedroom apartments increased by 5.2% over the past year, while rents for two-bedroom apartments rose by 7.4%.