Seller’s Markets Arise in Metro Vancouver Resale Sector
February witnessed a rebound in real estate markets throughout Greater Vancouver, the Fraser Valley, and Victoria, characterized by consecutive months of sales growth.
Source: MLA Canada
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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Tags: markets, Seller’s Markets, Greater Vancouver markets, Fraser Valley markets, Victoria markets
