Our local real estate board just released its recap and looking ahead report:
Metro Vancouver home sales registered a strong finish to cap off 2024 signaling strengthening demand momentum as we move into the new year.
Looking at 2024, realtors registered over 26,561 home sales on the MLS in 2024.
Sale activity had a slower start to the year but picked up in the later months including December. These more recent sale figures are now trending back towards long term historical averages which suggests there may be quite a bit of potential upside for sales as we head into 2025.
On the supply side, Seller’s listed about 60,388 homes on MLS in 2024. A 19% increase to 2023.
The year ended with about 10,948 homes listed for sale across the region on the MLS.
To get a better of supply and demand in the current market we can use the sales – to – active listing ratio. This ratio measures homes available for sale against the number of homes sold throughout the month to get an idea of supply and demand.
Analysis of historical data suggests downward pressure on home prices occurs when this ratio dips below 12% for a sustained period. Home prices often experience upward pressure when it surpasses 20% over several months.
2024 ended with this ratio at 17% for all homes. By property type, the ratio is 12% for detached homes, 24% for attached (townhomes) and 19% for apartments.
Price trends began 2024 on the rise and closed up the year on a flatter projectory. The MLS HPI, House Benchmark Price for all housing types in Metro Vancouver sits at $1,171,000. This is up about a half percent from 2023.
Breaking down my property types Detached and Townhomes saw year-over-year increases. Apartments, however, ended 2024 roughly flat.
Looking back on 2024 it can be best described as a pivot year for the market after experiencing such dramatic increases in mortgage rates in the preceding years.
The 2025 market however is positioned to be considerably more active than we’ve seen in recent years. With borrowing costs now firmly on the decline, buyers have started to show up in numbers after somewhat of a hiatus, building sales momentum into the new year.
