The Vancouver Housing Market primes in springtime, drawing inspiration from its famous cherry blossom trees. But 2024 has proved to be an anomaly so far. The cherry blossoms were as per schedule, but the housing market didn’t pick up. 

The Vancouver house market has been inconsistent so far in 2024. The market is committed to declining national average home prices and national benchmark home prices. However, few particular regions are recording strong positive growth. While the overall market is taking a nose dive, the encouraging signals in some provinces further represent its diverse and dynamic landscape.

The Canadian Real Estate Association (CREA) says that April recorded 1.7 percent lower real estate property sales than March. To be more specific, 2024 has witnessed ominously humbling sales numbers in a 10-year monthly moving average.

The drop in housing property sales has coincided with an unexpected rise in inventory. We see a roughly three percent month-over-month rise in new listings across the Vancouver Housing Market. However, the national average does not align with the significant growth in individual markets.

Potential housing buyers will enjoy strategically sound positioning in the market now- due to the growing number of listings and slackening sales numbers. Therefore, you can double down on your negotiation tactics by leveraging the market imbalance. The intention here should be to compel sellers to lower their expectations.

While the cherry blossoms will come back next year, the Vancouver, BC, housing market doesn’t need to undergo a year-long sabbatical for a comeback. This blog breaks down the market behavior, overview, expectations, and trends in Vancouver in 2024. Favorable interest rates and falling mortgage rates will fuel more property sales later down the year. 

Vancouver Market Report Summary

In recent years, the Vancouver housing market has become synonymous with raised prices and dropping sales numbers. According to our datasets, the average home price in Greater Vancouver is increasing by 4.1% annually. However, these hikes are failing to restore sales volumes.

Alternatively, we are seeing a yearly 4.5% rise in the benchmark price of homes in Greater Vancouver this year. The last four years have experienced an exponential 29% rise in Vancouver’s benchmark price, keeping it just 5.2% below the record.

Our studies reveal that essential factors such as cost of living, easy access to essential amenities, and convenient commute are influencing the demand and sale of housing properties in Vancouver. We expect the pattern to prevail for the remaining months of 2024. The demand in the housing market will continue to fluctuate until the provinces stabilize the supply of inventory. 

Greater Vancouver Home Sales by Property Type

The sales-to-active listings ratio across all detached, attached, and apartment property types was 23.5% in April. If we break it down by property type, the figures are as follows: 17.6% for detached homes, 31.0% for attached homes, and 26.0% for apartments.

The data indicates downward pressure on housing prices when the ratio falls below 12 percent for a sustained period. Alternatively, we see upward pressure on housing rates when they exceed 20 percent over several months.

• Detached

The sale of detached homes in Canada’s housing market increased by 0.7% from last year. 

• Attached Homes

The attached home sale in 2024 enjoyed a 16% hike from last year. Their benchmark price in 2024 is $1,127,200. 

• Condos

The numbers for condo sales have received a measly 0.2% boost since last year. 

Vancouver Housing Market Overview

Here’s a brief overview of Vancouver for your quick revision. It is a popular Canadian city with 2.5 million people and has previously ranked fiftieth in the top 100 cities list globally. The never-seen-before mortgage rates during the pandemic propelled its housing market to a new stratosphere, elevating the housing rates significantly to sideline potential homeowners.

Time is of great importance if you are planning to sell in the Vancouver Housing Market in 2024. We suggest you target early spring to sell because the supply is generally minimal. 

However, if you are considering a housing purchase this year, you should wait until a lighter mortgage rate is available. The now-present mortgage rates are on the higher side- we predict a drop in the mortgage rates in the latter half of the year. 

Moreover, you must maintain a patient attitude if you seek affordable financing. The analysts constantly review their predictions, and they typically announce the date when they believe the rate drop is near. 

There’s no denying that the core fundamentals of the Vancouver Housing Market are peppered with risk and uncertainty. This has significantly dented consumer confidence. However, one must never forget that consumer sentiment is fickle.

• Composite Home Prices

The average selling price of housing in Vancouver was $1,200,000 in June this year—a measly dip of 0.4% compared to the earlier month. Our datasets reveal that the prices of Vancouver housing properties have been on a steady rise of 0.5% annually over the last 12 months.

• Single-family Home Prices

The average selling rate of a single-family housing property in Vancouver was approximately $2,050,000 in June 2024. This is a marginal dip of 0.1% compared to the earlier month. According to the recent Vancouver real estate news report, the prices for single-family housing properties in Vancouver have increased by 3.6% annually over the last 12 months.

• Townhouse and Multiplex Prices

Much like the prices for composite homes and single-family homes, townhouse prices have also varied over the years. The average price of townhouses and multiplexes for sale in Vancouver was $1,138,000 in June this year. This is a drop of 0.6% compared to the March 2024 rates. Last year, a 3.0% price rise in townhouses in Vancouver was seen.

• Condo Prices

The average price of a condo apartment for sale in Vancouver was $773,000 in June 2024- a decrease of 0.4% from the average selling price of May this year. The price of a condo in Vancouver has shot up by 1.0% annually over the last 12 months.

• Rent Home Prices

Much like the selling prices, renting costs have also varied over the years in the Canadian housing market. The average rent dropped by 8.0% annually to $3,040 in June this year.

Average and Benchmark Home Prices

The average home price in Greater Vancouver was $1,300,000 roughly in June 2024. The figure indicates an annual increase of 6.2%. The average sale prices of various property types like detached houses, attached houses, and apartments in the city were approximately $2,300,000, $1,200,000, and $820,000, approximately. They establish a 5.0%, 1.5%, and -1.5% fluctuations relative to May 2024. 

Vancouver Home Sales

According to official records, 2,418 Vancouver houses were sold in June this year. Here is a detailed breakdown of the sales figures: roughly 700 detached homes, 1,250 apartments, and 450 attached homes. 

Vancouver’s housing market featured roughly 14,000 active listings at the end of June ’24. This is a massive 42% hike from last year and 4.0% relative to May 2024. To put it into perspective, the number of active listings 2024 is significantly higher than the current average in an extended period and a multi-year high.

The 5000+ new listings this month present a 7% increase annually but 10% lower than in July. The 2400+ home sales currently show a 19% decrease compared to the annual sales. We have tallied the numbers to derive the city’s sales-to-active listings ratio—the results are 17% for June, which is lower than 20% (May), 23.5% (April), and 23% (March) this year. 

Additionally, we note that Vancouver’s sales-to-new listings ratio (SNLR) for June this year was 42%. The difference from last year (43% in May 2024) is minimal. As per industry standards, an SNLR ranking above 60% is defined as a seller’s market, while an SNLR rank of below 40% is a buyer’s market. However, an SNLR between 40% and 60% is considered a balanced market.

Month-over-Month Market Expectations for Vancouver

• Transactions – Number of Sales

As mentioned, the total number of housing sales in Vancouver in June is 2418. Now, that’s a drop of up to 11.5% compared to May 2024. The overall sales in the Canadian housing market have decreased by 19.1% annually over the last 12 months.

• New Listings

The total number of new housing listings in Vancouver was 5,700+ in June, a drop of 10.2% compared with the previous month. These metrics have increased by 7.0% annually over the last 12 months.

• Real Estate Market

In Vancouver, the sales-to-new listings ratio, or SNLR, was 42% in June this year—indicating a balanced market. The market numbers from June suggest a drop of 1.5% from the previous month. Moreover, the city’s annual SNLR has dipped by 24.4% over the last year. For simple understanding, the SNLR is a metric that tracks the number of home sales compared to new listings. 

• Long-Term Trend

Since implementing low interest rates in 2005, Vancouver has experienced a massive 226% growth in home prices. This growth rate has been quicker than either the 50% inflation rate or wage growth in the past nineteen years. 

Setting up housing properties has been more challenging than most other economic goods and services. There’s a widespread belief that the scarcity of land makes housing building a natural limitation. You must avoid this myth since there is no natural limitation on population density expansion.

According to the latest quarterly forecast from CREA, interest rates are a major stumbling block that could hamper the Vancouver, Canada, housing markets throughout this year and next. The Bank of Canada’s summer rate hikes affected market activity last year.

Various commercial centers are exploring potential avenues for reduced interest, with more and more people building up their expectations in the second half of 2024. Additionally, the latest report from CREA predicted that roughly 492,000 housing properties would change ownership via the Canadian multiple listing service systems in 2024—the difference here indicates a 10.5% rise compared to last year. 

We anticipate the national average home price rising by up to 4.9% annually to $710,000 in 2024. The ascending trajectory will continue in 20225, with the national average home price rising further by 7%. Additionally, thanks to the dropping interest rates, national home sales are poised to reach 7.8% growth in 2025.

Vancouver Market Rents Summary

• You could rent a housing property in Vancouver for a rough $3,000 in June 2024- the renting figure has declined annually by 8.0%.
• In June this year, the average rent for a bachelor apartment in Vancouver was $2,300, which dipped by 8.0% annually. 
• You would have to put up a rough $2700 as an average rent for a 1-bedroom housing space in Vancouver in June 2024- this took a dip by 8.0% annually.
• The average rental expense for a 2-bedroom apartment in Vancouver was a rough $3,700 for June this year- a 5.0% fall year-over-year.
• You could have rented a 3-bedroom apartment in Vancouver for a rough $2,748 in June this year- this is a 5.0% drop on a year-over-year basis.

Rental Price Changes by City

Rental Price Changes by Province

Rental Price Growth by Housing Type

Glossary and Definitions

MLS HPI: The Canadian Real Estate Association (CREA) runs an index known as the MLS Home Price Index (HPI). They use it to track the prices of housing properties in a neighborhood. You can access it to compare home prices across Canada, both currently and between periods.

The HPI guarantees a consistent view and Vancouver housing market news across a longer time. CREA reviews the index annually in May to incorporate any necessary adjustments from the real estate marketplace.

MLS HPI Benchmark Price: You get the MLS Home Price Index (HPI) Benchmark Price when you process the HPI into a real-world price number.

Strata Insurance: If you own any housing property or a commercial space in a building, that building would ideally have a strata insurance policy. However, a first-timer would likely not grasp strata insurance as a concept. 

Strata insurance guards standard contents and property under the purview of a strata title or body corporate entity. It’s necessary to mention that strata insurance comes with some key distinctions from regular insurance, so you should dive into it after finishing this blog. 

Property Types

Detached houses are the regular single-family housing properties in the neighborhood. These residential buildings are typically single units and are separately titled.

Semi-detached home: Next in line, semi-detached housing properties are somewhat similar to detached properties—except for the fact that they share walls with the adjacent home. They collectively form an independent building but are separately titled as legally separate units. 

Townhouses: Thirdly, townhouses are a hybrid option between a detached/semi-detached home and a condo apartment. Much like the detached and semi-detached homes, they are separate units that may or may not share attachments with other similar housing properties. 

However, the owners must pay co-ownership fees (maintenance and other co-operative expenses).

Condo Apartment: They offer all types of apartments and condominiums. These residential units feature common areas and may vary in height.

Multiplexes are multi-story buildings that typically feature two to four individual units. Owners can access each unit individually via an external entrance, and higher floors are connected by staircases.

Property Classes

Freeholds: Any property where the owner has possession of both the real estate and the land it is based on can be defined as a freehold. Examples here include detached and semi-detached homes, some townhouses, and farmland.

Condominiums: If the owner owns the land where the housing property stands but chooses to share the ownership with a condominium corporation, then the property can be classified as a condominium. Examples here include condo apartments and some townhouses.

Leasehold: In this situation, multiple entities own the land and the housing structure on it. The building owner leases the land and pays rent to their landlord for owning the land and its houses.

Real Estate Recap Ensures Insight and Intelligence in the Housing Market

If you are new to the complex world of the housing market in Vancouver, you should develop a deep understanding of its myriad facets—from new listings to home price trends. Having core knowledge here will help you navigate various factors like economics and data analytics strategically.