As we bid farewell to 2023, The housing scene in Metro Vancouver wrapped up 2023 on a pretty balanced note. Still, behind the year-end numbers, there's an unexpected resilience despite facing the highest borrowing costs in over a decade.
In December 2023, residential sales in the region saw a 3.2% increase from the previous year, totalling 1,345 compared to 1,303 in December 2022. The sales-to-active listings ratio for December 2023 was 16%, with detached homes at 11.1%, attached at 18.7%, and apartments at 19.6%. The historical data suggests that a ratio below 12% for a sustained period exerts downward pressure on home prices, while a ratio surpassing 20% over several months often leads to upward pressure.
Sales of detached homes reached 376, showing a 1.3% increase from December 2022, with a benchmark price of $1,964,400. Apartment home sales reached 719, marking a 2.4% increase, and the benchmark price is $751,300. Attached home sales in December 2023 totalled 238, reflecting a 7.2% increase, with a benchmark price of $1,072,700.
Yearly Overview
The Real Estate Board of Greater Vancouver (REBGV) reports a 10.3% decrease in residential property sales, with 26,249 transactions in 2023 compared to 29,261 in 2022. This also marks a significant 41.5% drop from the 44,884 sales in 2021. However, Andrew Lis, the REBGV director of economics and data analytics, points out, "You could miss it by just looking at the year-end totals, but 2023 was a strong year for the Metro Vancouver Real Estate market considering that mortgage rates were the highest they’ve been in over a decade."
Market Trends
The properties listed on the Multiple Listing Service® (MLS®) decreased by 7.5%, totalling 50,893 in 2023, down from 55,047 in 2022. The current total homes listed for sale in Metro Vancouver stand at 8,802, representing a 13% increase compared to December 2022. Despite these numbers, Lis emphasizes that the story of 2023 revolves around a shortage of homes relative to willing and qualified buyers, attributing near record-low inventory levels in the spring to upward pressure on prices.
Price Dynamics
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,168,700, marking a 5% increase over December 2022. Lis reflects on the year, stating, "The fact that we ended the year with five-per-cent-plus gains in home prices across all market segments demonstrates that Metro Vancouver remains an attractive and desirable destination."
Looking Ahead
As we enter 2024, the anticipation of lower borrowing costs looms, with bond markets and professional forecasters projecting modest rate cuts in the first half of the New Year. The year 2023, despite its challenges, stands as a testament to Metro Vancouver's resilience and enduring appeal in the face of fluctuating market conditions.
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