Vancouver, British Columbia, known for its mild climate, stunning views, and coastal vibe, consistently ranks in the top five of the Global Liveability Index reports.
More Homes on the Market, But Buyer Interest Lags
The number of active listings in the Greater Vancouver real estate market has increased significantly, reaching over 13,000 in May.
This is due to the doubled number of units on the MLS® System, which provides detailed information and specialized search tools. Higher interest rates have also dampened sales, but the market balance is still tilting towards a more balanced position.
The city is running about 20% below the 10-year seasonal average on sales despite a cut in interest rates from the Bank of Canada in June.
If further rate cuts occur, it could help alleviate stress for first-time buyers and bring some buyers off the sidelines.
Property Prices Show Signs of Steadying
The Vancouver market is experiencing modest monthly increases of about 1%, with a decline in condo prices last month.
The benchmark price of detached homes is $2,062,600, with an average of 26 days on the market. Attached homes take an average of 23 days to sell, while condos spend an average of 24 days.
The rental market has 573 active listings, with average monthly prices varying by neighborhood.
Exploring the Many Desirable Neighborhoods Available
Property longevity in Metro Vancouver is primarily determined by its price and condition, rather than location, according to real estate expert List.
The market is similar to Toronto, with a rise in inventory, particularly condominiums, due to high interest rates.
The housing inventory has reached 13,000 homes, with 6,374 new listings in May 2024, compared to the previous year’s high rates of over 10 years.
Understanding the Current Demographic Shift
The millennial cohort, who are getting better jobs, rising incomes, and starting families, is the main demographic shift entering the housing market.
However, they face rising borrowing costs and long construction times, making purchasing more difficult.
The housing supply also takes years to build, making it difficult for this generation to compete with older, aging individuals.