Market Highlights For January 2024

Jump Start to the Real Estate Market

  • Buyers are back! Sales in Greater Vancouver were up 39% from January 2023
  • Vancouver detached listings are at the lowest level since December 2015
  • The number of new listings were only up 15% from January 2023
  • When will the Bank of Canada cut its rate?
  • The total number of sales in West Vancouver were the lowest by month since 2008

A new year, a new real estate market. Sort of. As 2024 took hold, buyers appeared to embrace homebuying more so than they did when 2023 began Sales were up 39% in Greater Vancouver and 52% in the Fraser Valley year-over-year. Anticipation of future rate cuts were on the minds of many as they awaited the Bank of Canada’s first interest rate announcement in late January. While a rate cut wasn’t anticipated, the messaging of future rate cuts was on the minds of many. And while some predicted the next Bank of Canada meetings in March and April could be the first rate cut since the spate of increases starting in 2022, sticky inflation and a Canadian economy sidestepping a recession could keep the current Bank rate in check until June or July. Buyers don’t seem to want to wait though as market activity so far is indicating the pent-up demand can only hold off for so long.

There were 1,427 properties sold in Greater Vancouver in January this year. This was a 39% increase from the 1,030 properties sold last year in January. And this was the first month-over-month increase in sales since May of last year. You can only keep a good market down for so long. Even with the deep freeze and snow event last month, buyers made their way out to go through the limited supply of listings, many surprised at how many were no longer available. As the temperature in January rose to finish the month, the real estate market seemed to see its temperature rise as well. Will February produce the first month with more than 2,000 sales since August? Likely yes, but that will require a few more sellers to join jump into the market as well. With this increase in activity, sales in January were 22% below the 10-year average after sales in December were 37% below the 10-year average and November’s sales were at 35% below the 10-year average. The trends and numbers certainly show an increase in buyer activity. The stats don’t lie.

With current sales, we continue to be in a balanced market with 6 months supply of homes overall in Greater Vancouver, falling back from 7 months supply in December. Vancouver’s West Side was higher in the region at 8 months supply and West Vancouver with its lowest monthly sales since December 2008 clocked in at 21 months supply of homes available. A severe buyer’s market. While its neighbour next door, North Vancouver, maintained its 4 months supply, doing its best seller’s market imitation. Burnaby North and South, New Westminster, Port Coquitlam, and Ladner all finished January with 4 months supply of listings. Ladner didn’t see any condo sales in January, but then again there are only 8 active listings and there were no new listings in December, proving you can’t buy what isn’t available. Pitt Meadows has the lowest supply in the region with only 3 months worth of listings available for buyers shopping in that city.

With the precipitous drop in total listings we saw through the last two months of 2023, January saw 3,875 new listings. This was the third lowest number of new listings for the month of January since the year 2000. This after there were only 1,355 new listings in December after 3,440 new listings in November, but it was slightly higher than the number of new listings in January last year at 3,384.

The number of new listings in January were 13% below the 10-year average, which is an improvement from December with the number of new listings in that month being 25% below the 10-year average. But still below the averages in the 3 months preceding December: 3% below the 10-year average in November, 5% above the 10-year average in October and 6% above the 10-year average in September.

There were 8,633 active listings in Greater Vancouver at the end of January after seeing 8,802 active listings at the end of December. It’s rare to see the total number of active listings end with less in January then in December, but after several listings expired at the end of December, January started with 7,828 active listings. And with fewer new listings in January than is typical, that hole is hard to dig out of. Perhaps it’s a signal to sellers that the opportunity to list their home on the market is better than we’ve seen over the last year. Buyers are shopping and hoping that more sellers will list. The detached market overall remains in buyer’s market territory with 8 months supply of inventory, down from 9 months in December. Townhomes slipped down to 4 months supply and condos continue to sit just above 5 months supply of listings. The missing middle known as townhomes had a 42% absorption rate in January with sales up 82% compared to January last year. This was higher than detached at 33% absorption and sales 28% higher than January 2023 and condos at 37% absorption and sales 30% higher than January 2023. Perhaps the provincial government’s small-scale, multi-unit housing plan should have focused more on building more townhomes and row homes than 3 to 6 unit buildings scattered throughout the region.

As we start February, Ground Hogs in Canada indicated that we would see an early spring. Will we also see and early real estate market? The thought was it would depend on interest rates starting their decline, but with a little more uncertainty when that might happen, buyers seem to be wanting to get on finding their first or next home.

January was an indication that buyers are back, but the question remains – where are the sellers? A slower decline in interest rates may produce a more balanced market, as long we see more listings come on the market. The sudden rise in interest rates is keeping supply out of the real estate market, not just resale, but the much-needed new product that will fuel buyers in the years to come. Bank of Canada governor Tiff Macklem recently said that high-interest rates aren’t to blame for the housing crisis and that it can’t solve the housing crisis with interest rates. That seems to fly in the face of that fact that elevated interest rates are keeping new development at bay as higher interest rates add to the cost of housing and risk for developers. The extension of the Foreign Buyer ban announced on February 4, which will be until 2027 may also limit supply and not provide more. The host of government regulations have not helped to build more supply in the real estate market and is doing the opposite.

Here’s a summary of the numbers:

Greater Vancouver: Total Units Sold in January were 1,427 – up from 1,345 (6%) in December, down from 1,702 (16%) in November 2023, up from 1,030 (39%) in January 2023, down from 2,329 (39%) in January 2022, down from 2,454 (42%) in January 2021, down from 1,602 (11%) in January 2020, up from 1,102 (29%) in January 2019; Active Listings were at 8,633 at month end compared to 7,862 at that time last year and 8,802 at the end of December; New Listings in January were up 186% compared to December 2023, up 13% compared to November 2023, up 15% compared to January 2023, down 9% compared to January 2022, down 16% compared to January 2021, down 3% compared to January 2020, down 22% compared to January 2019. Month’s supply of total residential listings is down to 6 month’s supply (balanced market conditions) and sales to listings ratio of 37% compared to 99% in December 2023, 30% in January 2023 and 55% in January 2022. Month-over-month, the house price index is down 0.6% and in the last 6 months down 4.6%.

For other regions, contact Berna Yazgan

Hulya TosunHulya Tosun
18:54 07 Jun 24
We were extremely pleased with Berna Yazgan's service. She quickly understood our requirements and showed us properties that met our needs, effectively saving us a significant amount of time. Throughout the entire process, Berna provided unwavering support and guidance. We are delighted with our new home and know that we could not have found it without her assistance.
Vldn B.Vldn B.
07:18 04 May 24
We realised the comfort of working with Berna when we came to Canada. I am glad we found and met with her. She lightened our moving with her kindness, sincerity and tolerance, not only renting a house also in every question that she can help. Our house was ready before we arrived and with Berna's support, we are in a home exactly what we want. Both location and home. We are very grateful for understanding our lifestyle without seeing us and providing this. I'm glad we got to know her————
Tuğba AkdenizTuğba Akdeniz
22:02 03 May 24
First of all, Berna is a really, really good person. Why am I saying this because she drew us a road map when it was a few months before we came to Canada, and we contacted her a month before. We have a baby, she not only showed us the most suitable houses for us, but also visited those houses tirelessly and added her personal comments, saying if it was good, it was good, if it was bad, it was bad. Moreover, she always gave her true opinion about the houses we liked but should not have. The most important point for us was that she found beds suitable for our child and sent them a link, and when the time came, she found a job for us and shared the link on LinkedIn. I think we are one of the lucky people to have loved our house very much and to have met Berna before coming to Canada. She always shared with us the links we needed for the house we rented, including electricity, water and internet, and we would like to thank her for always being accessible. I'm glad fate brought you to us, thank you. We deeply appreciated her 🙏🏽🎈❤️
Ece OkuyucuEce Okuyucu
17:35 27 Apr 24
Berna is extremely professional and a wonderful person. While helping us find our new home, she cared as if she were searching for a home for herself, not just a client. She provided advice on the best options considering the market conditions and our financial situation, while also making an extraordinary effort to find a home we would be happy living in. She would show homes over video calls and, in cases of time differences, she would send detailed videos, asking questions about the home that we might never have thought of ourselves. Moving to a new country can be psychologically challenging, and it's easy to panic and start settling for less. Here, Berna's friendship and experience really stand out. With her proper guidance, she helps ease your anxiety, encouraging you to continue searching until you find the perfect ending. Working with Berna was an amazing experience.
Ümmühan KahramanÜmmühan Kahraman
18:46 12 Apr 24
We met Ms. Berna upon her recommendation and reached her through social media, then we immediately made an appointment and started the house hunting process. She was patient from the beginning to the end of our process and helped us find the home that best suited our needs. Not only about the house, but also for our new move from Turkey to Vancouver, she did her best to help us handle many of our jobs remotely, and apart from finding a house, I really loved her energy and friendliness. I'm glad we got to know you, Ms. Berna, thank you very much.
Dilek KacarDilek Kacar
07:41 07 Apr 24
We worked with Berna when we were trying to find our first home and she was so helpful and quick in action. Finally, we’ve bought our first home in GVA and we can’t thank her enough for her help and effort. She is detail-oriented and friendly. She also keeps helping us after we close the sale and answering our questions and finding the solution. We highly recommend her for anyone who is looking for their dream home.
G BG B
20:27 26 Jun 23
Berna is a great consultant. We were very worried as we came from Turkey. It was very valuable for us to feel your support regarding our concerns and expectations. She did a great job helping us rent the house we wanted. Thank you for helping us get off to a good start in our new life.
js_loader

Leave a Comment

Your email address will not be published. Required fields are marked *