Metro Vancouver Real Estate Market Update: December 2023

The Metro Vancouver real estate market wrapped up 2023 with a tale of resilience and balance. Despite navigating some of the highest borrowing costs seen in over a decade, the year-end data highlights a stable and desirable housing market.

December 2023 Key Highlights:

• Sales Activity:
  Residential sales reached 1,345 units in December, reflecting a modest 3.2% increase compared to December 2022. While this was 36.4% below the 10-year seasonal average, it demonstrated steady demand in a high-interest rate environment.

• New Listings:
  There were 1,327 properties newly listed for sale across all property types in December. This marked a 9.9% increase year-over-year, though it remained 22.7% below the 10-year average.

Home Prices:

• Detached Homes:
  The benchmark price reached $1,964,400, increasing by 7.7% year-over-year but dipping by 0.9% month-over-month.

• Apartments:
  With a benchmark price of $751,300, apartment prices rose by 5.6% compared to December 2022, despite a 1.5% monthly decline.

• Townhouses:
  At $1,072,700, townhouses saw a 6.4% annual increase, coupled with a 1.8% monthly decline.

Sales-to-Active Listings Ratio:

This ratio stood at 16% across all property types, indicating a balanced market. Detached homes reported an 11.1% ratio, while attached homes and apartments saw ratios of 18.7% and 19.6%, respectively.

Market Trends and Insights:

The most notable trend of 2023 was the shortage of available inventory relative to the strong buyer demand. This dynamic kept upward pressure on prices, particularly in the spring when inventory reached near-record lows.

Looking ahead, potential rate cuts forecasted for 2024 may provide much-needed relief for buyers, potentially re-energizing the market in the new year.

Local Highlights:

• Burnaby:
  Detached home prices rose to $2,115,900 (+4.6% YoY), while apartments saw an annual gain of 7.3% to reach $809,200.

• New Westminster:
  Apartments in this area remained competitively priced at $648,400, showing a 6.6% increase from December 2022.

• Tri-Cities:
  Coquitlam, Port Moody, and Port Coquitlam all exhibited strong price growth across property types, with Port Moody townhouses standing out at $1,007,800 (+3.2% YoY).

What This Means for Buyers and Sellers:

• For Buyers:
  Balanced market conditions provide opportunities for careful decision-making, though pricing remains competitive due to limited inventory.

• For Sellers:
  Steady price growth and continued demand make this a favorable time to consider listing your property.