Vancouver Real Estate Market Update - July 2024

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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.

Bar graph showing Year-over-Year change in sales in Vancouver. Total sales decreased by about 15%, condo sales decreased by roughly 10%, and single-family home sales dropped by approximately 20%.

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%.

On the left, a line graph shows Vancouver's monthly new listings from 2010 to 2021. On the right, a bar graph depicts year-over-year percent change in new listings by total, condo, and single-family categories.

Graph showing Vancouver's sales-to-new list ratio (blue line) and HPI year-over-year percentage change (orange line) from 2010 to 2024. The sales ratio peaks in 2016, while HPI peaks in 2017.

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.

Bar chart showing year-over-year change in active listings in Vancouver. Total listings increased by 40%, condo listings by 55%, and single-family listings by 20%.

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.

The image shows two charts: the left chart illustrates the Vancouver MLS HPI from 2015 to 2024, showing an upward trend; the right chart displays the monthly change in Vancouver MLS HPI from Jan 2021 to Jan 2024.

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.

Two line charts depicting the number of dwellings under construction in Toronto from 1990 to 2018. The left chart shows total dwellings, and the right chart breaks it down into condo, single-family, and rental units.

Two line graphs showing Vancouver housing starts and single-family housing starts from 1990 to 2020. The first graph shows a fluctuating increase; the second shows a declining trend. Data source: CMHC.

Source: Edge Realty Analytics

‘ Credit:
Original content by www.canadianrealestatemagazine.ca – “Vancouver Real Estate Market Update: July 2024”

Read the complete article at https://www.canadianrealestatemagazine.ca/news/vancouver-market-update-july-2024/