The BC economy has struggled to grow in the past two years, facing headwinds from high interest rates, falling commodity prices, and slowing household spending. However, the Bank of Canada’s aggressive tightening has helped to cool inflation significantly, and the Bank has begun easing by lowering its policy rate in both June and July earlier this year with further rate cuts expected.

This policy shift has positive implications for the BC housing market, which has been sluggish since 2022 as high borrowing costs and robust home prices have stretched affordability. BC home sales have trended well below their ten-year average since the summer of 2023, but with fixed mortgage rates falling significantly from their 2023 levels and the Bank of Canada lowering rates, we expect home sales to rebound in the second half of the year and carry over into 2025.

After a weaker-than-anticipated start to the year, especially in the Lower Mainland, our forecast calls for MLS® unit sales to be only slightly higher in 2024, followed by a 10.7 per cent rise in 2025. This would bring home sales back to their ten-year average level by the end of the forecast horizon.

The supply side of the market has also been adjusting to the changing demand conditions. After posting a near 20-year low in 2023, new listings have trended near historical averages in most markets this year, though notably higher in areas more impacted by restrictions on short-term rentals.

A steady supply of new listings and sluggish sales over the first half of the year has resulted in the total inventory of homes for sale rising to its highest level since 2019. Market conditions have been trending near the lower end of what is traditionally defined as a balanced market. As such, average home prices have mostly trended sideways over the past year, with the notable exception of Greater Vancouver where the average price has returned to its 2022 peak.

We anticipate that the average home price in BC will edge up slightly this year, rising 2 per cent to an annual average of $990,500. As home sales pick up over the next year, we expect the market to tighten and for the average price in BC to rise 2.9 per cent to an average of $1.02 million.

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Provided by: BCREA

Top Floor Home

Bright & Spacious Layout

2 Bed, 2 Bath, 795sqft

Priced at $545,000

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Bright top floor home with over height ceilings. Spacious open floor plan. Welcome to Brydon Green, located in the heart of Langley City close to all sort of amenities: schools, shopping, dining and so much more. This 2 bed, 2 bath, 795sqft home features granite counters, stainless appliances, quality laminate flooring, plenty of cupboard and counter space, large laundry closet with extra storage, tons of windows & more. The large master has pass through closets & ensuite with double sinks. The 2nd bed is well sized with soaring ceiling height. Bonus: parking, locker & rental & pet friendly. Something for everyone: investors, first time buyers or down sizing couples. Act Now! Book your private viewing today.

Loft Style Home

1 Bed, 1 Bath, 756sqft

Priced at $498,800

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Stunning! Just one way to describe this south facing loft style home with amazing natural light. Welcome to UniverCity at SFU, Vancouver's premier lifestyle neighborhood. Enjoy the peace & tranquility this area has to offer. This 1 bed, 1 bath, 756sqft home will not disappoint. Features: 17'+ ceilings, an abundance of windows, quality flooring, open layout, SS appls, plenty of cupboard & counter space, spacious living & dinning areas. The large primary bedroom offers plenty of closet space, plush carpeting & overlooks the living area. Ideally located, steps away from the centre of the community. Bonus: tons of in-suite storage, 1 parking & locker. Close to: transit, shopping, indoor/outdoor recreation & a host of perks available only to UniverCity residences. Act Now!

Stunning sub Penthouse corner unit in a sought after building! This 2-bedroom+den condo offers a well-designed layout with bedrooms on opposite ends for privacy. The bonus flex room, with a large window, can serve as an office, third bedroom, or nursery. The unit features 9' ceilings throughout, filling the space with natural light. The open kitchen includes granite countertops, a breakfast bar, and stainless steel appliances. The master bedroom comes with a full ensuite and walk-in closet. Two side-by-side parking spaces close to the elevator and a private, oversized and insulated storage room on 4th floor are included. Pet-friendly and rentals allowed. Prime location close to schools, parks and transit. Call today for your private tour.

Listing offered by: Pathway Executives Realty

VANCOUVER, BC – August 2, 2024 – Newly listed properties registered on the Multiple Listing Service® (MLS®) rose nearly twenty per cent year over year in July, helping to sustain a healthy level of inventory in the Metro Vancouver¹ housing market.

On the demand side, the Greater Vancouver REALTORS®² (GVR) reports that residential sales in the region totalled 2,333 in July 2024, a 5 per cent decrease from the 2,455 sales recorded in July 2023. This was 17.6 per cent below the 10-year seasonal average (2,831).

“The trend of buyers remaining hesitant, that began a few months ago, continued in the July data despite a fresh quarter percentage point cut to the Bank of Canada’s policy rate,” Andrew Lis, GVR’s director of economics and data analytics said. “With the recent half percentage point decline in the policy rate over the past few months, and with so much inventory to choose from, it’s a bit surprising transaction levels remain below historical norms as we enter the mid-point of summer.”

There were 5,597 detached, attached and apartment properties newly listed for sale on the MLS® in Metro Vancouver in July 2024. This represents a 20.4 per cent increase compared to the 4,649 properties listed in July 2023. This was also 12.7 per cent above the 10-year seasonal average (4,968).

The total number of properties currently listed for sale on the MLS® in Metro Vancouver is 14,326, a 39.1 per cent increase compared to July 2023 (10,301). This is also 21.5 per cent above the 10-year seasonal average (11,788).

Across all detached, attached and apartment property types, the sales-to-active listings ratio for July 2024 is 16.9 per cent. By property type, the ratio is 12.8 per cent for detached homes, 20.1 per cent for attached, and 19.3 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.

"With the overall market experiencing balanced conditions, and with a healthy level of inventory not seen in quite a few years, price trends across all segments have leveled out with very modest declines occurring month over month,” Lis said. “While it remains to be seen whether softening prices and improved borrowing costs will entice buyers to purchase as we head into the fall market, it’s worth noting that it can take a few months for improvements to borrowing costs to materialize into higher transaction levels. In this respect, it’s still early days, so we will watch the market for signs of transaction activity picking up in the months ahead.”

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,197,700. This represents a 0.8 per cent decrease over July 2023 and a 0.8 per cent decrease compared to June 2024.

Sales of detached homes in July 2024 reached 688, a 1 per cent increase from the 681 detached sales recorded in July 2023. The benchmark price for a detached home is $2,049,000. This represents a 2.1 per cent increase from July 2023 and a 0.6 per cent decrease compared to June 2024.

Sales of apartment homes reached 1,192 in July 2024, a 6.9 per cent decrease compared to the 1,281 sales in July 2023. The benchmark price of an apartment home is $768,200. This represents a 0.3 per cent decrease from July 2023 and a 0.7 per cent decrease compared to June 2024.

Attached home sales in July 2024 totalled 437, a 6.2 per cent decrease compared to the 466 sales in July 2023. The benchmark price of a townhouse is $1,124,700. This represents a 1.4 per cent increase from July 2023 and a 1.2 per cent decrease compared to June 2024.

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Provided by: Greater Vancouver REALTORS®

Editor’s Note:

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®.

Greater Vancouver REALTORS® is an association representing more than 15,000 REALTORS® and their companies. The association provides a variety of member services, including the Multiple Listing Service®. For more information on real estate, statistics, and buying or selling a home, contact a local REALTOR® or visit www.gvrealtors.ca.