so far , 2024 looks a lot different than 2023 did Vancouver’s resale market continued to gain momentum in February vis-a-vis increasing sales counts and new listings. Notably, last month’s totals for each measure were well above their February 2023 levels.
February average. These close-to-average inventory levels, combined with below- average sales, tipped market conditions back in favour of sellers in February, as the months-of-inventory (MOI) measure declined to 4.3 (a sellers’ market is indicated by 5.0 or fewer MOI). As March is upon us, and with it the green shoots of a spring market, the recent trends of increasing sales and listings that have so far outpaced last year will continue for the foreseeable future. And with inflation now back inside the Bank of Canada’s target range of 1-3% (at 2.9% as of January), all eyes will be on the February inflation data release, followed by the April 10th Bank of Canada rate announcement. If the Bank opts to hold its policy rate again in April, expect these trends to continue a little longer; whereas if they decide to cut, the pace of activity will pick up as spring rolls on.
Much has changed over the course of the past year, and some of it was positive, like the downward trend in inflation. For potential homebuyers, however, a challenge: not only are interest rates higher than they were a year ago, so too are home values across the Vancouver Region. An additional theme that’s emerged so far in 2024 is that both sales and listings counts— despite being below their respective long-run levels—are significantly higher than they were in 2023. Indeed, market activity is picking up not because interest rates have yet fallen, but in anticipation of them doing so. In February, there were 3,204 MLS sales in the Vancouver Region, which was 20% more than in the same month last year, but still 23% less than the past 10-year February average. Sales were also 38% higher than in January, and the first time
since August 2023 that any month’s sales count surpassed 3,000. With a generally strong correspondence between new listings and sales activity, it’s not surprising that the former can largely be characterized in the same manner as the latter. There were 6,924 new MLS listings in February, which was 32% higher than last year, but still 1.4% below the past-decade average for the month. February’s new listings were also 15% higher than January’s total, thereby exceeding the typical January-to- February bump of 8%. The interplay between the market’s sales and new listings dynamics yielded 13,635 total MLS listings by the end of February, which was 21% higher than in February 2023. Inventory also bucked the trend of the other metrics and finished the month 0.5% above the past-decade
Copyright © 2024 rennie group of companies. All rights reserved. This material may not be reproduced or distributed, in whole or in part, without the prior written permission of the rennie group of companies. Current as of March 8, 2024. All data from Real Estate Board of Greater Vancouver and Fraser Valley & Rennie. While the information and data contained herein has been obtained from sources deemed reliable, accuracy cannot be guaranteed. rennie group of companies does not assume responsibility or liability for any inaccuracies. The recipient of the information should take steps as the recipient may deem necessary to verify the information prior to placing any reliance upon the information. The information contained within this report should not be used as an opinion of value, such opinions should and can be obtained from a rennie and associates advisor. All information is subject to change and any property may be withdrawn from the market at any time without notice or obligation to the recipient from rennie group of companies. E.&O.E. 3
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