Dear Stuart,

In December, 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 4%, while apartments increased by 27%, 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 47%, apartments decreased by 31%, and townhomes decreased by 27%.

As for the median home prices, In December, westside detached home prices are down 6% from their peak in August 2023. Apartment prices decreased by 6.3% from their peak in January 2018, and attached home prices declined by 11.6% from their peak in February 2022. 

The Real Estate Board of Greater Vancouver (REBGV) reports that Vancouver’s housing market closed out 2023 with balanced market conditions, but the year end totals mask a story of surprising resilience in the face of the highest mortgage rates seen in over ten years and proves that Vancouver remains a desirable investment destination and even doubled borrowing costs are not enough to deter buyers determined to buy into this market.

The REBGV reports that residential sales in the region totalled 26,249 in 2023, a 10.3 per cent decrease from the 29,261 sales recorded in 2022, and a 41.5 per cent decrease from the 44,884 sales in 2021. 

Last year’s sales total was 23.4 per cent below the 10-year annual sales average (34,272). 

Properties listed on the Multiple Listing Service® (MLS®) in Metro Vancouver totalled 50,893 in 2023. This represents a 7.5 per cent decrease compared to the 55,047 properties listed in 2022. This was 20.2 per cent below the 63,761 properties listed in 2021. 

The total number of properties listed last year was 10.5 per cent below the region’s 10-year total annual average of (56,868). 

Currently, the total number of homes listed for sale on the MLS® system in Metro Vancouver is 8,802, a 13 per cent increase compared to December 2022 (7,791). This is 0.3 per cent above the 10-year seasonal average (8,772). 

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,168,700. This represents a five per cent increase over December 2022 and a 1.4 per cent decrease compared to November 2023. 

“Ultimately, the story of 2023 is one of too few homes available relative to the pool of willing and qualified buyers,” said Andrew Lis, REBGV’s director of economics and data analytics. “Sellers were reluctant to list their properties early in the year, which led to fewer sales than usual coming out of the gate. But this also led to near record-low inventory levels in the spring, which put upward pressure on prices as buyers competed for the scarce few homes available.”

“Looking back on the year, it’s hard not to wonder how we’d be closing out 2023 if mortgage rates had been a few per cent lower than they were. And it looks like we might get some insight into that question in 2024, as bond markets and professional forecasters are projecting lower borrowing costs are likely to come, with modest rate cuts expected in the first half of the New Year.” 

Our supply of homes will start to increase Feb. through June and the demand which is still well below the 10 year average should also increase. It will be the ratio of sales to available listings that will determine whether prices rise or fall. 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.

Rate cuts if they come will encourage buying but 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 prices are as strong as they are given the market forces arrayed against buyers is amazing and is a true testament to the desirability of Vancouver globally.

All the best for 2024. 

✨🎉 H̥̊ḁ̊p̥̊p̥̊ẙ̥ N̥̊e̥̊ẘ̥ Y̥̊e̥̊ḁ̊r̥̊ 🥂✨

Stay safe and healthy.

Best regards,

Stuart ✨🎉

Detailed information on the Westside detached homes market in December. Here's a summary of the key points:

• Supply:
• In December, the supply of Westside detached homes decreased by 12.3% compared to November, with a total of 490 homes available, down from 559.
• This is a slight decrease of 3% compared to December 2022 when there were 505 homes on the market.
• Demand:
• Sales of Westside detached homes in December were down 37% from November, with 34 homes sold.
• Sales were down 10.5% compared to December 2022, which had 38 sales.
• The number of sales remains 47% lower than the ten-year average of 65 sales.
• Months of Supply (MOS):
• The Months of Supply (MOS) in December increased by 39% from the previous month, with a current MOS of 14.4 compared to 10.4 in November.
• This represents an 8.4% increase from December 2022.
• A MOS between 7 to 10 is typically considered a balanced market, where prices tend to remain relatively stable.
• Pricing:
• The average and median detached home prices in December decreased 11% and 6% from August 2023's peak.
• The average price is $4.24 million, and the median price is $3.97 million.
• Current prices are down 6.5% on average and up 20% on median from their previous peaks in October 2017 and July 2017, respectively.
• High and Low Sale Prices:
• The highest sale price for a Westside detached home in December was $14 million, which spent 609 days on the market before selling.
• The lowest price for a detached home was $1.99 million, selling after 39 days on the market.
• Of the 34 sales, 8 received the asking price or more, while 26 homes sold below the asking price.

These statistics provide a comprehensive overview of the Westside detached homes market in December, shedding light on changes in supply, demand, pricing, and notable sale prices.

Detailed information on the Westside apartment market in December. Here's a summary of the key points:

• Supply:
• In December, the supply of Westside apartments decreased by 19% compared to November, with a total of 1,278 apartments available for sale.
• This number is up by 13% from December 2022.
• Demand:
• Demand for Westside apartments decreased by 21% in December, with 177 sales compared to 225 sales in November.
• The number of sales in December was down 7% from the same month last year, which had 190 sales.
• Apartment sales are down 31% from the ten-year average of 256 sales.
• Months of Supply (MOS):
• The Months of Supply (MOS) in December increased slightly by 2.5% compared to November, reaching 7.2.
• This is an increase of 21% from the MOS of 5.9 in December 2022.
• Prices:
• The average price of Westside apartments in December is up 4.5% from November, with the average price at $1.04 million.
• It was also up by 5% from December 2022.
• The median price was unchanged from November at $825K and is down slightly from December 2022.
• Both average and median prices are down from their respective peaks, with average prices down by 13% from the peak of $1,199,000, and median prices down 6.3% from the peak in January 2018.

These statistics provide a comprehensive picture of the Westside apartment market in December, highlighting changes in supply, demand, pricing, and their respective trends over time.

Detailed information on the Westside townhouse market in December. Here's a summary of the key points:

• Supply:
• In December, the supply of Westside townhouses decreased by 21% compared to November, with a total of 211 townhouses available for sale.
• The supply was relatively unchanged from December 2022, which had 213 townhouses on the market.
• Demand:
• The demand for townhouses in December decreased by 38%, with 23 sales.
• The number of sales in December increased by 53% from the same month last year, which had 15 sales.
• Attached home sales are 27% below the ten-year average of 31 sales.
• Months of Supply (MOS):
• With the decrease in both supply and demand, the current Months of Supply (MOS) for townhouses increased by 27%, reaching 9.2.
• However, this is 35% lower than the MOS of 14.2 in December 2022.
• Prices:
• The average price of townhouses in December was $1.66 million, showing a 6% increase from November.
• It increased slightly from December 2022 when the average price was $1.64 million.
• The median price in December was $1.59 million, a 6% increase from November ($1.499 million), and a 3% increase from December 2022.
• Both average and median prices for townhouses are down from their respective peaks, with the average price decreasing by 10.3% from the peak of $1.854 million in November 2021, and the median price down 11.6% from the peak of $1.799 million in February 2022.

These statistics provide a comprehensive overview of the Westside townhouse market in December, indicating changes in supply, demand, pricing, and their respective trends over time.