The Shift in Vancouver Real Estate, June 2024

Written in June 2024. Some details have changed since, so check current numbers before you act on this.

The major shift in Vancouver real estate in June 2024 was a surge in inventory. Listings kept climbing, sales fell behind, and that put downward pressure on prices. If you're watching this market today, the Kyle Mark Report shows the current numbers for your area, free with an account.

Understanding the Surge in Inventory

Increased Inventory Since December

Since December, we've seen a consistent increase in inventory across most municipalities. Sales, however, haven't kept up. This oversaturation of inventory is putting downward pressure on prices.

Impact of Interest Rate Drop

With the recent interest rate drop, the big question is: how long will it take for buyers to react and start absorbing this inventory?

Detailed Market Analysis

Greater Vancouver Data Overview

Greater Vancouver REALTORS® reported total sales in May 2024 of 2,733, marking a 19.9% decrease from May 2023 and a 19.6% decrease from the 10-year seasonal average.

Andrew Lis, the Greater Vancouver REALTORS® economist, noted that multiple factors are influencing buyer and seller decisions, including high borrowing costs, economic concerns, and government policy changes.

Inventory and Sales Dynamics

Greater Vancouver REALTORS® also reported that in May 2024, there were 6,374 newly listed properties across detached, attached, and apartment categories, a 12.6% increase compared to May 2023 and a 7% increase compared to the 10-year average.

Market Conditions

Sales to Active Ratio

Greater Vancouver REALTORS® put the sales to active ratio across all categories in May 2024 at 20.8%, indicating strong balanced market conditions.

• Detached Market: 16.8% - Balanced Market
• Attached and Apartments: Vary by sub-area

Sub-Area Analysis

Let's take a closer look at the data for Vancouver East and Vancouver West, and the broader Greater Vancouver area.

Which Vancouver neighbourhoods were winning and losing?

Vancouver East

• Strong Sellers Market: Properties in Fraser, Hastings-Sunrise, and Mount Pleasant are performing well, with strong sales and limited inventory.
• Buyer's Best Bets: Homes in the higher price bands in areas like Collingwood and Renfrew Heights offered good opportunities when I wrote this.

Vancouver West

• High Competition: Areas like Kitsilano and Kerrisdale are experiencing high competition with strong sales ratios.
• Opportunities: South Granville and Cambie offer potential deals with current low sales ratios.

Price Trends and Predictions

Price Points

Greater Vancouver REALTORS®' May 2024 detached benchmark was $2,062,600 across Greater Vancouver, $3,548,900 in Vancouver West and $1,879,000 in Vancouver East. Vancouver West sat well above Vancouver East when I wrote this, so a Greater Vancouver number won't price your street. The Kyle Mark Report shows the current prices for each area, free with an account.

Future Market Conditions

The market is expected to remain in strong balanced conditions. However, with potential future rate cuts, there could be increased buyer activity, putting upward pressure on prices.

Advice for Buyers and Sellers

For Buyers

This is a prime time to enter the market with the current soft underbelly of inventory. Look for properties in high-demand areas with potential for appreciation.

For Sellers

Ensure your property is competitively priced. High-demand areas and well-priced properties will move quickly. If you're in a strong seller market like Kitsilano or Kerrisdale, now is a good time to sell.

Stay Informed and Connected

Keep up with the latest market trends and data. For more detailed insights, check out my YouTube channel or book a strategy call with me. I'm here to help you navigate the Vancouver real estate market.

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NOTE: this representation is based in whole or in part on data generated by the Chilliwack & District Real Estate Board, Fraser Valley Real Estate Board or Real Estate Board of Greater Vancouver which assume no responsibility for its accuracy.