Vancouver Home Sales Register a Strong Finish to Cap Off 2024

5 days ago

4 min read

Residential Average Sale Prices Vancouver - January 1977 - December 2024

The Metro Vancouver real estate market closed out 2024 with renewed momentum, driven by a December surge in home sales. Residential transactions on the Multiple Listing Service® (MLS®) totalled 26,561 for the year, a modest 1.2% increase from 2023, reflecting a recovery year for the region. Despite this growth, sales remain 20.9% below the 10-year average, underscoring the lingering effects of higher borrowing costs and economic uncertainty in prior years.

The increase in new listings by 18.7% in 2024 compared to 2023 suggests improving seller confidence, and December’s 31.2% year-over-year rise in sales further highlights the market’s resilience. This rebound positions the market for a more dynamic 2025.

A Closer Look at the 2024 Market

According to Andrew Lis, GVR’s Director of Economics and Data Analytics, 2024 marked a “pivot year” following sharp mortgage rate increases in 2022 and 2023. Borrowing costs, which had deterred buyers in earlier years, began to decline steadily in the latter half of 2024. This shift brought renewed energy to the market, as many buyers who had been sidelined by higher costs re-entered the market.

Key highlights of 2024 include:

1. Stabilized Home Prices:

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver ended the year at $1,171,500, representing a modest 0.5% year-over-year increase. While detached homes and townhouses saw steady growth, apartment prices remained relatively flat due to higher inventory levels and less demand pressure.

2. Shift in Buyer Preferences:

• Detached Homes: A steady demand for family-oriented homes helped drive a 2% year-over-year price increase to a benchmark of $1,997,000. Detached sales rose 31.4% in December, signaling robust buyer interest.

• Townhouses: Townhomes emerged as a highly sought-after segment, with prices rising 3.4% year-over-year to a benchmark of $1,114,600. Sales in December surged 55.9% year-over-year, as affordability and functionality made this segment particularly appealing.

• Apartments: Despite being a historically active market segment, apartments experienced little price movement, with a benchmark price of $749,900 (-0.1% year-over-year). This reflects the increased inventory and evolving buyer demand toward ground-oriented homes.

3. Inventory Expansion:

Total properties listed in 2024 rose to 60,388, an 18.7% increase compared to 2023, and 5.7% above the 10-year average. Rising inventory, combined with the sales rebound, contributed to a more balanced market dynamic.

December 2024: A Turning Point

December 2024 saw 1,765 home sales, marking a 31.2% increase from December 2023. This was bolstered by a 24.4% rise in active listings compared to the previous year.

• Detached Homes: 494 sales (+31.4% YoY), with benchmark prices up 2% YoY.

• Townhomes: 371 sales (+55.9% YoY), with benchmark prices up 3.4% YoY.

• Apartments: 891 sales (+23.9% YoY), with a slight decline in benchmark prices (-0.1% YoY).

The sales-to-active listings ratio, a key indicator of market conditions, ended December at 16.8%:

• Detached Homes: 12.1% (balanced market).

• Townhouses: 23.6% (stronger seller’s market).

• Apartments: 18.7% (balanced market).

These ratios suggest upward price pressure in the attached market segments (townhouses and apartments) but a more balanced dynamic for detached homes.

2025 Market Forecast

The outlook for 2025 is optimistic, with several factors contributing to a forecasted resurgence in activity:

1. Lower Borrowing Costs

Mortgage rates are anticipated to continue declining gradually, reducing barriers for first-time buyers and allowing move-up buyers to leverage increased equity. This could drive sales volumes closer to the 10-year average.

2. Stronger Price Growth

• Detached Homes: Expect 3-5% price growth, driven by limited supply and steady demand.

• Townhouses: Townhomes may see even greater appreciation, with forecasted price gains of 5-7%, as buyers continue to prioritize affordability and space.

• Apartments: While this segment is likely to remain competitive, increased buyer activity could stabilize prices and lead to modest growth of 1-3%.

3. Inventory Balance

With a healthy pipeline of new listings expected, the market should maintain a balanced supply-demand dynamic. This balance will likely prevent dramatic price swings while offering opportunities for both buyers and sellers.

Recommendations for Buyers and Sellers

For Buyers:

Take advantage of declining interest rates and current pricing levels before increased competition drives prices higher. Detached homes and townhouses, in particular, may offer strong investment potential in 2025.

For Sellers:

With buyer activity on the rise, now is a favorable time to list your property, especially in the townhouse and detached home segments, where demand remains robust. Strategic pricing and effective marketing will be critical to capturing maximum value.

Work with Keith Bickert for Your 2025 Real Estate Goals

As a professional advisor with extensive experience in Vancouver and Burnaby real estate, I’m here to help you navigate the market with confidence. Whether you’re a buyer, seller, or investor, my background in real estate, finance, and property management positions me to offer unparalleled insights and support.

Let’s make 2025 your year in real estate! Reach out today to start planning your next move.