February witnessed a rebound in real estate markets throughout Greater Vancouver, the Fraser Valley, and Victoria, characterized by consecutive months of sales growth.
Despite challenges in meeting the 10-year seasonal average, signs of a cautious market emerged as sellers became more active, resulting in a transition towards seller’s markets and higher sales-to-listings ratios. While price trends varied, all three regions showed positive momentum, suggesting a more optimistic outlook as they enter the Spring market.
GREATER VANCOUVER SEES CONTINUED SIGNS OF RECOVERY
The sales momentum observed in January extended into February, marking a second consecutive month of growth with a total of 2,070 sales recorded. Despite this positive trend, activity remains 23.3% below the 10-year seasonal average of 2,699 for February.
While sales activity trailed behind the seasonal average, there was a notable increase in new listings, aligning with typical averages and signaling a revival in seller participation. New listings rose by 34.6% month-over-month, totaling 4,560, resulting in 9,634 active listings for February.
With the increase in listings, the market has shifted from balanced to a seller’s market as demand matches supply. The sales-to-listings ratio sits at 22.4% across all product types, further highlighted by ratios of 31.3% for townhomes and 25.9% for condominiums.
The MLS® HPI composite benchmark price for all residential properties in Greater Vancouver is currently at $1,183,000, reflecting a 1.9% month-over-month increase. However, the benchmark price remains 6.3% below peak values observed in April 2022.
Greater Vancouver SALES TO LISTING RATIO. Source: MLA Canada
FRASER VALLEY MARKET SHOWS STEADY GROWTH
February witnessed continued upward momentum in overall sales activity within the Fraser Valley resale market, though still falling below long-term averages. Despite some buyers returning to the market amid promising inflation data and expectations of interest rate cuts, activity remains subdued compared to typical years.
The Fraser Valley recorded a total of 1,235 sales in February, marking a 32% increase from January but remaining 21% below the 10-year average. While this uptick is significant month-over-month, it largely reflects seasonal trends as the Spring market gains traction. Additionally, the region saw 5,561 active listings in February, up 14% from the previous month and 26% from February 2023.
The market has transitioned from a balanced state in winter to a seller’s market, evident in February’s sales-to-listings ratio of 22%. Moreover, average days-on-market (DOM) decreased from 28 days in January to just 13 days in February, indicating growing market optimism as listed properties transact more swiftly.
The MLS® HPI composite benchmark experienced a 0.9% month-to-month increase from January, reaching $994,600, breaking a six-month streak of price declines. Year-over-year values in the region are up by 4.8%, yet they remain 16.9% below the market’s peak in March 2022.
Fraser Valley SALES TO LISTING RATIO. Source: MLA Canada
STABLE HOME VALUES IN VICTORIA AS SPRING APPROACHES
February 2024 saw a notable increase in sales activity for the Victoria Real Estate Board, with a surge of over 38% compared to the previous month. Despite this uptick, activity remained consistent with levels observed a year earlier, totaling 470 transactions. Active listings also experienced a substantial 30.7% rise from February 2023, reaching a total of 2,364. Consequently, the sales-to-listings ratio shifted from a buyer’s market territory of 11% in January to nearing a seller’s market at 20% in February.
In terms of benchmark values, condominiums in the Victoria Core recorded a slight month-over-month decline of 0.4%, with a benchmark value of $557,000 in February 2024. Although condominium values have seen recent declines, they remain up by 1.4% year-over-year. Overall, the Victoria resale market demonstrates relative stability, with positive momentum leading into the Spring market.
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Residential property sales in Metro Vancouver. Source: GVR
While Metro Vancouver1 home sellers appeared somewhat hesitant in January, new listings rose 31 per cent year-over-year in February, bringing a significant number of newly listed properties to the market.
Greater Vancouver REALTORS® (GVR)2 reports that residential sales3 in the region totalled 2,070 in February 2024, a 13.5 per cent increase from the 1,824 sales recorded in February 2023. This was 23.3 per cent below the 10-year seasonal average (2,699).
“While the pace of home sales started the year off briskly, the pace of newly listed properties in January was slower by comparison. A continuation of this pattern in February would have been concerning, as it could quickly tilt the market towards overheated conditions.”
Andrew Lis, REBGV director of economics and data analytics
“With new listings up about 31 per cent year-over-year in February, this will relieve some of the pressure that was building in January and offer buyers more choice as we enter the spring and summer markets.”
There were 4,560 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in February 2024. This represents a 31.1 per cent increase compared to the 3,478 properties listed in February 2023. This was 0.2 per cent below the 10-year seasonal average (4,568).
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 9,634, a 16.3 per cent increase compared to February 2023 (8,283). This is three per cent above the 10-year seasonal average (9,352).
Across all detached, attached and apartment property types, the sales-to-active listings ratio for February 2024 is 22.4 per cent. By property type, the ratio is 16 per cent for detached homes, 27.9 per cent for attached, and 25.9 per cent for apartments.
Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
Sales-to-active listings ratio – February 2024. Source: GVR
“Even with the increase in new listings however, standing inventory levels were not high enough relative to the pace of sales to mitigate price acceleration in February, with most segments of the market moving into sellers’ territory,”
Lis said.
“This competitive dynamic has led to modest price growth across all market segments this month, but it’s noteworthy that benchmark prices remain below the peak observed in the spring of 2022, before the market internalized the full effect of the Bank of Canada’s tightening cycle.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,183,300. This represents a 4.5 per cent increase over February 2023 and a 1.9 per cent increase compared to January 2024.
Sales of detached homes in February 2024 reached 560, an 8.3 per cent increase from the 517 detached sales recorded in February 2023. The benchmark price for a detached home is $1,972,400. This represents a 7.2 per cent increase from February 2023 and a 1.5 per cent increase compared to January 2024.
Sales of apartment homes reached 1,092 in February 2024, a 17.7 per cent increase compared to the 928 sales in February 2023. The benchmark price of an apartment home is $770,700. This represents a 5.6 per cent increase from February 2023 and a 2.5 per cent increase compared to January 2024.
Attached home sales in February 2024 totalled 403, a 10.1 per cent increase compared to the 366 sales in February 2023. The benchmark price of a townhouse3 is $1,094,700. This represents a 4.2 per cent increase from February 2023 and a 2.6 per cent increase compared to January 2024.
1 Areas covered by Greater Vancouver REALTORS® include: Bowen Island, Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.
2 On February 12, 2024, The Real Estate Board of Greater Vancouver changed its organizational name to the Greater Vancouver REALTORS®.
3 GVR is now including multifamily and land sales and listings in this monthly report. Previously, we only included detached, attached, and apartment sales, and these additional categories, which typically account for roughly one to two per cent of total MLS® activity per month, are being included for completeness in our reporting.
