In November, the sales and listings activity for detached homes on the Westside remained below the long-term averages. Compared to the 10-year average, the supply of detached homes decreased by 9%, while apartments increased by 28%, and townhomes increased by 26%.
Similarly, the demand for properties on the Westside also saw a decline when compared to the 10-year average. The demand for detached homes decreased by 37%, apartments decreased by 30%, and townhomes decreased by 18%.
As for the median home prices, In November, detached home prices are down 21.2% from their peak in August 2023. Apartment prices decreased by 6.3% from their peak in January 2018, and attached home prices declined by 15.9% from their peak in February 2022.
In November, residential property sales in the Greater Vancouver region showed an increase of 4.7%, reaching 1,702 sales compared to 1,625 sales in November 2022. However, this is still 33% below the 10-year November sales average.
The benchmark price for all residential properties in Metro Vancouver rose by 4.9% from last year in November 2022, reaching $1,185,000, but it is showing a 1% decrease from the last month.
The number of properties currently available for sale on the MLS system in Metro Vancouver increased by 13.5% compared to November 2022, to a total of 10,931 listings. This figure is still 3.7% above the 10-year seasonal average of 10,543 listings.
Our supply of homes is starting to increase and the demand is still well below the 10 year average so prices are starting to soften. Some of this is seasonal as the market is quiet in Dec & January, picks up February through June, slows down in July & August and usually picks up a little in October. So now is the time to begin to prepare for a spring sale.
We are also further into the mortgage renewal cycle and many owners who purchased with favourable rates are now coming into renewals at much higher rates. For those owners unable to access funds from other sources to pay down their mortgages, the question is whether they will be forced to sell and what that will do to prices?
The fact that interest rates did not jump creates stability but the rates are still high and any increase will have a negative effect on sales and prices
Happy holidays and you and your family.
All the best for 2024.
Stay safe and healthy.