Metro Vancouver Real Estate Market Update: August 2024

As we move through 2024, the Metro Vancouver real estate market has seen its fair share of challenges. Higher borrowing costs and fluctuating sales activity have left many buyers and sellers wondering, What does this mean for me? Whether you're buying or selling a home, condo, or townhouse in Burnaby, New Westminster, Vancouver East, or Vancouver West, understanding current market conditions is essential.

Key Insights from August 2024

In August, residential sales in Metro Vancouver dropped by 17.1% compared to the same time last year, and sales were 26% below the 10-year seasonal average. However, this market slowdown offers a balanced environment—especially for buyers who have been waiting on the sidelines.

• New Listings: The number of homes listed for sale in August rose by 4.2% compared to last year, with more inventory accumulating. This is creating more opportunities for those looking to buy in popular areas like Burnaby or Vancouver West.

• Sales-to-Active Listings Ratio: Across all property types, the ratio of sales to active listings in August was 14.3%, reflecting balanced conditions. But let’s break it down:

  • For detached homes, the ratio was 9.6%, indicating a market that favors buyers.

  • Townhomes and condos were more balanced, with ratios of 18% and 17.2% respectively, suggesting stable prices in those segments.

What does this mean for you? Generally speaking, a sales-to-active ratio of 12-20% represents a balanced market where prices remain stable. When this ratio falls below 12% for a sustained period, prices tend to face downward pressure. On the other hand, ratios over 20% typically signal upward pressure on prices, especially if they remain high for several months. So, while the market is balanced overall, buyers in the detached housing segment may have more room to negotiate, and sellers of condos and townhomes can expect prices to remain steady.

Burnaby and New Westminster Market Trends

Burnaby:

Burnaby remains a sought-after location for both buyers and sellers, but market activity has softened:

• Detached homes in Burnaby East saw sales fall by 33.8% in August, yet the benchmark price rose by 3.2% over the past year, reaching $2,007,200. For buyers, this means more selection and less competition.

• Townhomes and condos offer a more balanced market. With a sales-to-active listings ratio around 18%, both buyers and sellers have opportunities to achieve favorable deals.

• Condos in Burnaby North are holding steady with minimal price changes over the last year, making this an attractive area for buyers looking to enter the market.

New Westminster:

New Westminster, a vibrant and growing city, also reflects these balanced market conditions:

• Detached homes in New Westminster saw a notable decline in sales, down 46.5% from August 2023. Yet, prices are up by 2.2%, with the benchmark price now at $1,613,500. Buyers interested in detached homes could find better opportunities to negotiate a deal.

• Townhomes and condos are also seeing price stability, with the benchmark for a townhouse at $953,000 and apartments at $656,800. For those looking to sell, this stability presents a good opportunity to list, especially if you’ve been waiting for the right time.

Vancouver East and Vancouver West Market Update

Vancouver East:

• Vancouver East, known for its vibrant communities and diversity, remains relatively stable. The benchmark price for a detached home is $1,869,800, a slight increase of 0.1% compared to last year. Buyers looking for family homes in this area could benefit from the market's balance, with fewer bidding wars and more room to negotiate.

Vancouver West:

• Vancouver West’s luxury market saw a 1.4% decrease in detached home prices, with a benchmark of $3,458,500. While prices remain high, this slight decline could present opportunities for savvy buyers.

• Condo prices in Vancouver West are also stabilizing, with the benchmark price at $853,400—up 0.5% compared to last year.

Opportunities for Buyers and Sellers

While the current market might appear slow at first glance, there are great opportunities for both buyers and sellers.

• For Buyers: If you’ve been waiting for the right time, now could be a good opportunity, especially in the detached housing market where the sales-to-active listings ratio indicates it’s more of a buyer’s market. Detached home prices are relatively stable, and with less competition, you may find a better deal.

• For Sellers: If you’re thinking about selling a condo or townhouse, the market remains balanced. With stable prices and active buyers, now could be a good time to list your property. Every property is unique, so reaching out for a customized market analysis will help you determine the right approach for your home.

Why Experience Matters

As the All Seasons Real Estate Agent, I’ve navigated through many types of markets over my 18 years in the business. Whether you're buying or selling, it’s important to understand that market conditions are unique to each property type and neighborhood. A detached home in Burnaby South will have different dynamics than a condo in New Westminster or a townhouse in Vancouver East.

I encourage you to reach out if you have any questions or want to discuss how these market trends could affect your real estate goals. Together, we can create a plan tailored to your unique situation and ensure you make the most informed decision possible.