Dear Stuart,

In February, 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 17%, while apartments increased by 28%, and townhomes increased by 33%.

Similarly, demand, when compared to the 10-year average, decreased by 30% for detached homes, apartments decreased by 25%, and townhomes decreased by 10%.

In February, the westside Detached Home median price is down 14.9% from the peak in August 2023. The Apartment median price decreased by 14.7% from the peak in January 2018, and the Attached Home median price declined by 7.3% from the peak in February 2022.

Our supply of homes usually increases Feb. through June and the demand which is still well below the 10 year average should also peak during that time. 

The spring market often starts off undersupplied and this year is no different with inventory struggling to keep pace with demand. The ratio of demand to supply known as “months of supply”. MOS, is a driver of prices with a high MOS causing prices to decline and a low MOS causing prices to rise.

In January, the MOS, for westside detached homes, was 11.9 months which is too high to sustain prices but February MOS has dropped to 7.2 which is trending toward price increases. Townhouse MOS was 12 in Jan. and 5.6 in Feb. Apartment MOS was 6.9 in Jan. and 5.3 in Feb. So all segments if the market are trending in the same direction and currently, prices remain stable.

New listings are starting to come onto the market too however and while the 2024 forecast is calling for a 2-3% increase in prices by the year end, that will depend on increases in demand exceeding increases in supply. 

The seasonal market cycle is; quiet in Dec & Jan, busy February through June, slowing down in July & August and picking up a little in October. So now is the time to prepare for a spring sale.

The Bank of Canada did not change the rates this week and that is seen as a conservative move to forestall any backsliding in the inflation rate due to an energized spring housing market.

Rate cuts if they come later this year will encourage buying but we are also further into the mortgage renewal cycle and now, many owners who purchased with favourable rates are forced into renewals at much higher rates. For owners unable to access funds from other sources to pay down their mortgages, the question is whether they will be forced to sell?

Even with high rates, Vancouver seems set for an optimistic spring market.

Happy St Patrick's Day! 🍀 💚🎩🍻

Best regards

Stuart

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

• Supply:
• In February, the supply of Westside detached homes increased by 7% compared to January, with a total of 485 homes available, up from 453.
• This is a decrease of 5% compared to February 2023 when there were 508 homes on the market.
• Demand:
• Sales of Westside detached homes in February were up 76% from January, with 67 homes sold.
• Sales were up 8% compared to February 2023, which had 62 sales.
• The number of sales remains 30% lower than the ten-year average of 95 sales.
• Months of Supply (MOS):
• The Months of Supply (MOS) in February decreased by 39% from the previous month, with a current MOS of 7.2 compared to 11.9 in January.
• This represents an 11.7% decrease from February 2023.
• 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 February decreased 21% and 15% from August 2023's peak.
• The average price is $3.76 million, and the median price is $3.6 million.
• Current prices are down 17% on average and down 6.4% 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 February was $8.343 million, which spent 211 days on the market before selling.
• The lowest price for a detached home was $1.975 million, selling after 187 days on the market.
• Of the 67 sales, 21 received the asking price or more, while 46 homes sold below the asking price.

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

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

• Supply:
• In February, the supply of Westside apartments increased 9% compared to January, with a total of 1,393 apartments available for sale.
• This number is up by 18% from February 2023.
• Demand:
• Demand for Westside apartments increased by 41% in February, with 262 sales compared to 186 sales in January.
• The number of sales in February was up 26% from the same month last year, which had 208 sales.
• Apartment sales are down 25% from the ten-year average of 350 sales.
• Months of Supply (MOS):
• The Months of Supply (MOS) in February decreased by 23% compared to January, to 5.3.
• This is a decrease of 7% from the MOS of 5.7 in February 2023.
• Prices:
• The average price of Westside apartments in February is down 3% from January, with the average price at $1.02 million.
• It was relatively unchanged from February 2023.
• The median price was 2% from January at $845K and is up 7% from February 2023.
• Both average and median prices are down from their respective peaks, with average prices down by 15% from the peak of $1,199,000, and median prices down 4% from the peak in January 2018.

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

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

• Supply:
• In February, the supply of Westside townhouses increased by 17% compared to January, with a total of 252 townhouses available for sale.
• The supply was up 22% from February 2023, which had 207 townhouses on the market.
• Demand:
• The demand for townhouses in January decreased by 22%, with 18 sales.
• The number of sales in January decreased by 10% from the same month last year, which had 20 sales.
• Attached home sales are 39% below the ten-year average of 30 sales.
• Months of Supply (MOS):
• With the increase in supply and decrease in demand, the current Months of Supply (MOS) for townhouses increased by 31%, reaching 12.
• This is 18% higher than the MOS of 10.2 in January 2023.
• Prices:
• The average price of townhouses in January was $1.79 million, showing a 8% increase from December.
• It decreased slightly from January 2023 when the average price was $1.82 million.
• The median price in January was $1.73 million, a 9% increase from December ($1.59 million), and relatively unchanged from January 2023.
• Both average and median prices for townhouses are down from their respective peaks, with the average price decreasing by 3% from the peak of $1.854 million in November 2021, and the median price down 4% from the peak of $1.799 million in February 2022.

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