The Real Estate Board of Greater Vancouver (REBGV) reported a strong start for home sales in Metro Vancouver in January 2024. Residential sales surged by 38.5% compared to January 2023, totaling 1,427 units. This increase favored sellers, signaling a shift from the balanced market conditions at the end of 2023. However, the pace of new property listings did not match the rise in sales, resulting in a 20.2% decrease from the 10-year seasonal average.
Andrew Lis, REBGV’s director of economics and data analytics, noted the unexpected strength in January sales following a quiet December. He expressed concerns about insufficient inventory potentially leading to increased competition among buyers, pushing the market back into sellers’ territory.
In January 2024, 3,788 properties were newly listed for sale, marking a 14.5% increase from January 2023. However, this figure remained 9.1% below the 10-year seasonal average. The total number of properties listed for sale in Metro Vancouver increased by 9.8% compared to January 2023, totaling 8,633 units, albeit slightly below the 10-year average.
The sales-to-active listings ratio for January 2024 stood at 17.2%, with ratios varying across property types: 11.9% for detached homes, 22.9% for attached, and 19.9% for apartments. Analysis of historical data indicated downward pressure on prices below 12% and upward pressure above 20% for a sustained period.
The forecast for 2024 predicts a 2-3% price increase by year-end, driven by demand outpacing inventory. Lis emphasized that the January figures might indicate a stronger market than initially anticipated and suggested monitoring February data to confirm trends.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver was $1,161,300, reflecting a 4.2% increase from January 2023 and a 0.6% decrease from December 2023. Sales of detached homes increased by 28% year-over-year, with a benchmark price of $1,942,400, up 7.3% from January 2023. Apartment sales rose by 30.6%, with a benchmark price of $751,900, while attached home sales surged by 82.7%, with a benchmark price of $1,066,700 for townhouses.
The data suggests a robust market at the beginning of 2024, with sales increases across property types. However, concerns linger regarding the imbalance between supply and demand, potentially affecting future market dynamics.