Strong Momentum in Greater Vancouver

Strong Momentum in Greater Vancouver

Real Estate Market Signals the Return of Consumer Confidence in 2024

The Greater Vancouver Real Estate market has demonstrated an impressive trajectory as it kicked off
the year with notable growth. Home values surged by $10,320 monthly and an impressive $84,637
year-over-year, resulting in an average home sale price of $1,252,392. The surge in yearly sale prices
coincided with a remarkable 37.5% increase in overall market activity, while inventory saw a 2.4%
uptick.

The real estate landscape in 2024 has started on a positive note, and industry experts predict a
further acceleration in market conditions in the latter half of the year. This creates a timely opportunity
for prospective homebuyers to make their move before the market potentially witnesses a resurgence
of multiple offers and frenzied activity.

As highlighted in a recent Globe and Mail article, attempting to time the mortgage rate cuts may not be the best path forward. “The truth is no one knows the future of interest rates – even Mr. Macklem is
uncertain about the possibility and timing of rate cuts. For first-time home buyers navigating the
uncertainty, it’s crucial to acknowledge that a crystal ball for mortgage rates doesn’t exist. And getting
caught up in the hype and uncertainty surrounding the future of rates is dangerous. When you buy
your first home, aim for a reasonable degree of certainty regarding the people in your life and your
housing needs; otherwise, you will end up having to sell sooner than you had planned and perhaps in
unfavourable market conditions, costing yourself tens or even hundreds of thousands of dollars.”

In January, each asset class experienced both monthly and yearly gains, instilling confidence in
homebuyers and sellers as market conditions stabilized. Leading the charge was the detached
market, boasting an average sales price of $2,104,523 – a monthly increase of $40,801 and a
significant yearly increase of $194,628 or 10.2%. The inventory for detached properties increased by
9.4%, with 3,310 active listings, resulting in a substantial 28.4% yearly gain in sales.

Condo prices also saw an upswing, reaching an average sales price of $816,427 – a robust yearly
increase of 7.5%. The strength of condo sales played a crucial role in this upward trajectory, with
January recording 749 sales, marking the 9th consecutive month of yearly gains. Sellers are
becoming more confident in achieving sales, reflected in the market with 11.3% more inventory in
January 2024 compared to the previous year.

Townhomes emerged as the highlight of the first month, experiencing a remarkable 83.3% yearly
increase in sales, totalling 220 finalized transactions. The average townhouse in Greater Vancouver
is now priced at $1,141,674, and despite a 6.8% yearly decline in inventory, the demand remains
strong.

The REBGV highlighted the unexpectedly robust performance of the housing 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,” commented Andrew Lis, REBGV’s director of
economics and data analytics. “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. This follows a recent interview where Andrew expressed, “As we navigate through
2024, we expect a delicate balance between rising sales and normalizing inventories, which should
lead to a relatively quiet year for prices.”

A promising indicator of the market's potential for substantial gains is the re-entry of the Greater
Vancouver housing market into a golden cross scenario. This pattern, characterized by a short-term
moving average crossing above a long-term moving average, is considered a bullish breakout
pattern, suggesting positive momentum and potential future growth.

The anticipated strength and resilience projected for the latter half of the year seem to be gaining
traction earlier than expected. In light of this, both buyers and sellers should be prepared to make
informed decisions as the market continues to unfold.