The Metro Vancouver housing market experienced notable developments in February 2024, with a surge in new listings and an uptick in sales, suggesting a dynamic period for both buyers and sellers.
The new listings in February rose by 31% year-over-year, contributing to a significant increase in inventory and offering more options for buyers. This change was necessary, as the Greater Vancouver Real Estate Board (REBGV) observed a brisk start to the year in terms of home sales but a slower pace for new listings in January, which could have led to overheated market conditions if continued.
Sales of residential properties reached 2,070 in February 2024, marking a 13.5% increase from February 2023, although still 23.3% below the 10-year seasonal average. The increase in new listings—31.1% higher compared to February 2023—brought the total number of properties listed for sale to 9,634, a 16.3% rise from the previous year and slightly above the 10-year average. This increase in inventory was essential to relieve the building pressure from January, according to Andrew Lis, REBGV director of economics and data analytics.
The sales-to-active listings ratio stood at 22.4% across all property types, indicating a sellers' market, as ratios above 20% over several months often suggest upward pressure on prices. Indeed, despite the increased listings, inventory levels relative to sales pace did not prevent price acceleration.
The MLS® Home Price Index composite benchmark price for all residential properties was $1,183,300, up 4.5% from February 2023, reflecting modest price growth across the market. However, benchmark prices remain below the peak of spring 2022, before the impact of the Bank of Canada’s tightening cycle was fully felt.
Specifically, sales of detached homes, apartment homes, and attached homes all saw increases compared to February 2023, with detached homes experiencing a 7.2% increase in benchmark price, apartment homes a 5.6% increase, and attached homes a 4.2% increase. These statistics underscore a competitive market with modest price growth, despite the influx of new listings and the overall sales activity remaining below the 10-year seasonal average.
In summary, February 2024 marked a significant month for the Metro Vancouver housing market, with increased activity bringing much-needed inventory and maintaining a competitive dynamic. While the market moves into sellers' territory with modest price increases, it provides a nuanced view of the market's response to economic conditions and policy impacts.
