May 2024 Real Estate Market Update: A Shift Towards Balanced Conditions

May 2024 brought a noticeable shift in Metro Vancouver’s real estate market, with trends pointing toward more balanced conditions. Elevated borrowing costs, economic uncertainties, and a significant increase in inventory have created a dynamic landscape for buyers and sellers alike. Here’s a breakdown of the most impactful changes and insights for the month.

Sales Activity Overview:

Home sales across Metro Vancouver totaled 2,733 in May 2024, marking a 19.9% decline from May 2023 and a 19.6% drop below the 10-year seasonal average. This softening demand reflects the multifaceted influences of higher interest rates, policy changes, and economic apprehension.

However, with increased inventory, buyers have a window of opportunity to negotiate. Whether it’s a detached home in Burnaby or a condo in New Westminster, there’s growing potential for more favorable conditions this summer.

Inventory on the Rise:

• May saw 6,374 new properties listed for sale, a 12.6% increase compared to the same month last year.

• Total active listings surged by 46.3%, reaching 13,600 homes. This increase provides buyers with more choices, while sellers must approach pricing strategically to remain competitive.

Sales-to-Active Listings Ratio:

• Detached homes: 16.8%

• Attached homes: 25.1%

• Apartments: 22.5%

Historically, downward price pressure occurs when the ratio falls below 12% for a sustained period, while upward pressure is observed when it surpasses 20%. With the current ratios hovering near balanced thresholds, price trends could stabilize in the coming months.

Benchmark Prices:

• Composite benchmark: $1,212,000 (+2.3% YoY)

• Detached homes: $2,062,600 (+5.9% YoY)

• Apartments: $776,200 (+2.2% YoY)

• Townhomes: $1,145,500 (+5.2% YoY)

Detached homes showed the most robust price growth, underscoring their enduring appeal despite economic headwinds.

Insights for Buyers and Sellers:

• For Buyers:
  Buyers who have been waiting for more favorable conditions may find this summer’s market more approachable, as rising inventory and slowing sales can provide leverage.

• For Sellers:
  Sellers should align pricing with current market conditions and be prepared for extended listing periods.

May 2024 encapsulates a market in transition, balancing the effects of slowing sales with rising inventory. For those ready to navigate the complexities, opportunities abound.

Thinking of buying or selling in Burnaby, New Westminster, or the surrounding areas? Let’s connect to create a strategy tailored to your needs.