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.

On September 4, 2024, the Bank of Canada cut its key interest rate to 4.25%, marking the third consecutive reduction this year. While many expected this move, it leaves Canadians—especially those considering buying or selling real estate—wondering what does this mean for me?

Understanding the Rate Cut

This rate cut directly impacts borrowing costs, with most lenders lowering their prime rates to 6.45%. Variable-rate mortgages and home equity lines of credit (HELOCs) will see immediate relief, making borrowing more affordable for homebuyers​. However, fixed-rate mortgages are influenced by bond market movements, and this cut could put downward pressure on those rates as well​.

What Buyers Should Know

For buyers, this is promising news. Lower borrowing costs may help improve affordability for those entering the market. Whether you're looking at condos in Burnaby, homes in Vancouver, or townhouses in New Westminster, now may be a good time to explore your options. But remember, mortgage rates are still higher than pre-pandemic levels, so it’s important to factor in your long-term financial goals.

And while more cuts are expected in October and December, world events or inflation could change the pace. It’s always wise to base decisions on your current situation rather than relying on predictions​

What Sellers Should Know

For sellers, the rate cut might bring more buyers back into the market as affordability improves. More buyers mean potentially stronger demand, especially for townhomes and condos, where activity has been steady. If you’re considering selling your home in Vancouver or New Westminster, this could be a good time to get it on the market. Keep in mind that every property and neighborhood is unique, so while market trends matter, your personal goals and the condition of your property are key factors.

Looking Ahead: Future Rate Announcements

The Bank of Canada is scheduled to meet again in October and December, with economists anticipating further cuts that could bring the rate down to 3.75% by year-end​. But nothing is set in stone. Inflation, economic performance, or geopolitical events could change the direction, so while it’s valuable to stay informed, making decisions based solely on predictions isn’t always wise.

What Should You Do?

Whether you’re buying a condo in Burnaby, selling a house in Vancouver, or considering both, understanding how rate changes affect you is crucial. Real estate is a complex market, and every decision should be tailored to your individual situation. As the All Seasons Real Estate Agent, with 18 years of experience in navigating market ups and downs, I’m here to help you understand the market and create a plan that works for you.

The Greater Vancouver real estate market showed notable trends this July, with increased inventory and cautious buyer activity shaping the landscape. With Burnaby, New Westminster, Vancouver East and West, and the Tri-Cities in focus, let’s dive into the key developments and what they mean for buyers and sellers.

Inventory Surge Provides More Options

• The number of new listings surged by 20.4% year-over-year, adding 5,597 properties to the market.

• Total active listings reached 13,800, reflecting a 33% increase compared to July 2023.

• Buyers in Burnaby South, Coquitlam, and New Westminster are seeing more choices, particularly in the detached home and condo segments.

Sales Activity Softens

• Residential sales totaled 2,333 units, a 5% decrease from July 2023 and 17.6% below the 10-year seasonal average.

• Despite this decline, certain segments and areas still show resilience:

  • Burnaby North and Vancouver East: Attached homes remain popular, offering a balance of affordability and space.

  • Port Moody: Strong interest in townhomes highlights this area's appeal to families and first-time buyers.

  • Vancouver West: Luxury condos continue to draw attention from high-end buyers.

Sales-to-Active Listings Ratios Signal Balance

• The overall sales-to-active listings ratio in July was 16.9%, suggesting a balanced market, with notable variations by property type:

  • Detached homes: 12.8% (near buyer’s market territory in areas like Burnaby East).

  • Attached homes: 20.1% (balanced, particularly in Tri-Cities and Vancouver East).

  • Apartments: 19.3% (stable, with strong activity in New Westminster condos).

Pricing Trends Remain Stable

• The MLS® Home Price Index composite benchmark price for all residential properties was $1,197,700, reflecting a 0.8% decrease year-over-year and month-over-month.

  • Detached homes: $2,049,000 (+2.1% YoY) with steady interest in Burnaby South and Coquitlam.

  • Townhomes: $1,139,000 (+1.3% YoY) with strong performance in Port Coquitlam.

  • Condos: $772,800 (unchanged YoY) with affordable options in New Westminster attracting first-time buyers.

Insights for Buyers and Sellers

• For Buyers:
  With expanded inventory, buyers have more opportunities to explore options in Burnaby and the Tri-Cities. Detached homes in Coquitlam and townhomes in Port Moody offer excellent value.

• For Sellers:
  The increase in listings means competitive pricing is essential, particularly for luxury properties in Vancouver West and condos in Burnaby North. Strategic marketing and preparation remain key.

July 2024 underscores a market balancing between opportunity and caution. Whether you’re buying a condo in New Westminster, selling a house in Burnaby, or exploring investment opportunities in the Tri-Cities, understanding these dynamics is crucial.

Contact me today to discuss how these trends impact your real estate goals and create a plan tailored to your needs!

As we navigate through the midpoint of 2024, the Greater Vancouver real estate landscape continues to evolve, marked by a blend of trends that provide a nuanced view for potential buyers and sellers. Here’s a comprehensive look at what happened in July 2024, with a special focus on Burnaby, New Westminster, and adjacent areas.

Market Activity

• Total Sales: Residential property sales in Greater Vancouver totaled 2,333 in July 2024, reflecting a 5% decline from the 2,455 sales recorded in July 2023 and 17.6% below the 10-year seasonal average of 2,831.

• New Listings: The market welcomed 5,597 new listings in July, up 20.4% from the previous year and 12.7% above the 10-year average.

• Total Listings: Overall listings reached 14,326, a 39.1% increase compared to last year and 21.5% above the 10-year average.

Sales-to-Active Listings Ratio:

• Overall: 16.9%

• Detached Homes: 12.8%

• Attached Homes: 20.1%

• Apartments: 19.3%

Home Prices:

• Composite Benchmark Price: $1,197,700, showing a 0.8% decrease compared to both last year and the previous month.

Regional Focus: Burnaby and New Westminster

• Burnaby East: The benchmark price here is $1,156,800, with a slight monthly decrease. Despite the short-term dip, the five-year growth stands robust at 99.8%.

• Burnaby North: Current benchmark price is $1,018,800, slightly down by 0.4% over the last month, yet showing an impressive 89.3% growth over the last decade.

• Burnaby South: With a benchmark price of $1,141,500, this area noted a 1.5% decrease year-over-year but has seen a 29.3% rise over the last three years.

• New Westminster: Offers a more affordable entry point at $821,300, with a year-over-year decrease of 2.2%, yet the long-term trend is significantly positive with a 105.7% increase over five years.

Surrounding Areas Spotlight:

• Port Moody and Coquitlam are attracting attention with strong long-term growth prospects, highlighted by Port Moody’s 128.0% increase over five years.

• North Vancouver and Richmond also continue to be areas of interest with steady growth and appealing community amenities.

Market Insights

Andrew Lis, GVR’s director of economics and data analytics, noted a continued trend of buyer hesitancy, which is surprising given the recent cuts in borrowing costs and the increase in inventory. The balanced market conditions and the substantial inventory levels provide a solid ground for potential price stabilization or modest declines, offering opportunities for buyers.

Outlook

As borrowing conditions improve, we anticipate a potential uptick in buyer activity moving into the fall. The market's response to these changes will be critical to watch, particularly in areas like Burnaby and New Westminster, where long-term value appreciation shows significant potential.

As summer unfolds, the Metro Vancouver real estate market offers increased opportunities for buyers, with more inventory and competitive pricing shaping a dynamic landscape. Activity levels have softened compared to historical norms, but strategic buyers and sellers are finding ways to thrive.

Key Trends in June 2024:

Sales Activity Across the Region:

Residential home sales reached 2,418 units, a 19.1% decrease compared to June 2023 and 23.6% below the 10-year seasonal average. While activity has cooled, well-priced homes are seeing steady interest, particularly in areas like Burnaby South and New Westminster.

Inventory Growth Brings Options:

• Active listings rose to 14,182 units, up 42% year-over-year, providing buyers with the broadest range of options since spring 2019.

• Burnaby North: Detached homes saw a slight increase in listings, giving buyers more leverage.

• Tri-Cities: Port Moody’s condo market gained traction as inventory grew.

• Vancouver East: Attached homes continue to attract interest with their balance of affordability and space.

Market Dynamics by Property Type:

The overall sales-to-active listings ratio was 17.6%, signaling balanced conditions:

• Detached homes: 13.1% (buyer’s market in areas like Coquitlam and Burnaby East).

• Attached homes: 21.1% (balanced, particularly in Port Coquitlam and Vancouver East).

• Apartments: 20.3% (balanced, with hotspots in New Westminster and Burnaby).

Pricing Trends for June 2024:

• Composite benchmark price: $1,207,100

  • Up 0.5% year-over-year

  • Down 0.4% month-over-month

• Detached homes: $2,061,000 (+3.7% YoY)

  • Strongest growth observed in Vancouver West and Burnaby South.

• Attached homes: $1,138,100 (+3% YoY)

  • Consistent demand in Coquitlam and Port Moody.

• Apartments: $773,400 (+1% YoY)

  • Popular among first-time buyers in New Westminster and Burnaby North.

What Does This Mean for Buyers and Sellers?

• For Buyers:
  With inventory at its highest level in years, buyers have more choices in markets like Burnaby South and Vancouver East. Detached homes in Coquitlam and condos in New Westminster offer excellent opportunities for those ready to act.

• For Sellers:
  Pricing remains key in the current market. Homes in sought-after neighborhoods, such as Port Moody townhouses or Vancouver West luxury properties, continue to attract interest. Strategic pricing and marketing will maximize results.

June 2024 highlights a market in transition, offering a balance between opportunity and competition. Whether you’re selling a condo in Burnaby, buying a house in Vancouver East, or investing in the Tri-Cities, understanding market trends is crucial.

Reach out today to craft a plan tailored to your real estate goals!