Major Shift in Vancouver Real Estate Market | June 2024

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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

Total sales in May 2024 amounted to 2,733, marking a 19.9% decrease from May 2023 and a 19.6% decrease from the 10-year seasonal average.

Andrew Le, the Greater Vancouver Realtor 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

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

The sales to active ratio across all categories in May 2024 was 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.

Vancouver East and West: Winners and Losers

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 priced between $2.75 million and $3.5 million in areas like Collingwood and Renfrew Heights offer good opportunities.

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: Benchmark price for a detached home is $2,626,000.
• Vancouver West: Average price point is $3,557,500.
• Vancouver East: Average price point is $1,900,000.

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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