Home Sales Register a Strong Finish to Cap Off 2024

As 2024 came to a close, the real estate market in Metro Vancouver showcased signs of renewed vitality, marked by a significant increase in home sales and listings. Data from the Multiple Listing Service® (MLS®) reveals a year of steady recovery, fueled by easing borrowing costs and a surge in buyer activity. This analysis dives into the key takeaways from 2024’s real estate trends and sets the stage for an optimistic 2025.

Home Sales Register a Strong Finish to Cap Off 2024

As 2024 came to a close, the real estate market in Metro Vancouver showcased signs of renewed vitality, marked by a significant increase in home sales and listings. Data from the Multiple Listing Service® (MLS®) reveals a year of steady recovery, fueled by easing borrowing costs and a surge in buyer activity. This analysis dives into the key takeaways from 2024’s real estate trends and sets the stage for an optimistic 2025.

1. Overview of 2024 Real Estate Market Trends

Metro Vancouver’s real estate market in 2024 recorded 26,561 residential sales, reflecting a 1.2% increase compared to 2023. While sales remained 20.9% below the 10-year annual sales average, December marked a turning point with a 31.2% year-over-year increase in sales.

• Sales Momentum: December sales totaled 1,765 units, a notable jump from 1,345 in December 2023.

• Listings Surge: The year saw 60,388 properties listed, an 18.7% increase from 2023, indicating stronger seller participation.

2. December 2024: A Closer Look

December provided critical insights into the market’s direction:

Sales by Property Type

• Detached Homes: Sales rose by 31.4%, reaching 494 units.

• Benchmark price: $1,997,000 (+2% YoY).

• Apartments: Sales increased by 23.9%, with 891 units sold.

• Benchmark price: $749,900 (-0.1% YoY).

• Attached Homes: A standout segment with a 55.9% increase, totaling 371 units.

• Benchmark price: $1,114,600 (+3.4% YoY).

Sales-to-Active Listings Ratio

• Detached: 12.1%

• Attached: 23.6%

• Apartments: 18.7%

The balanced-to-seller’s market conditions indicate price stability with potential upward trends in high-demand segments.

3. Annual Listings and Inventory Dynamics

The market saw 60,388 new listings in 2024, an 18.7% rise from 2023, surpassing the 10-year average by 5.7%. Current inventory levels are robust, with 10,948 homes available for sale, a 24.4% increase from the previous year.

4. Drivers of Market Change

a. Declining Borrowing Costs

After years of high mortgage rates, 2024 marked a pivot towards affordability. Lower rates encouraged buyers who had previously delayed purchases.

b. Emerging Buyer Confidence

• Renewed confidence is evident as sales approach historical averages.

• High demand for attached and apartment properties reflects preferences for affordability and urban living.

5. Property Type Analysis

Detached Homes

The detached home segment showed resilience, with modest price growth amid steady sales. A 2% annual price increase highlights stable demand.

Attached Homes

With a 55.9% sales growth in December, townhouses emerged as a favored choice for families seeking affordability without sacrificing space.

Apartment Homes

Apartments accounted for the highest sales volume, demonstrating strong urban demand despite slightly declining prices.

6. Benchmark Prices and Trends

The composite benchmark price for Metro Vancouver properties ended 2024 at $1,171,500:

• Year-over-Year Growth: +0.5%

• Month-over-Month Movement: -0.1%

While price trends flattened towards year-end, renewed activity suggests upward potential in 2025.

7. Market Challenges in 2024

Despite gains, the market faced headwinds:

• Below-Average Sales: Sales were 20.9% below the 10-year annual average.

• Flat Apartment Prices: Reflecting market sensitivity to affordability.

8. Outlook for 2025

Market trends point to an active 2025, buoyed by favorable conditions:

• Potential Upside in Sales: December trends suggest a return to historical sales averages.

• Sustained Price Growth: Stable demand may lead to moderate price increases, especially in attached and detached segments.

FAQs: Real Estate Market in Metro Vancouver

Q1: What caused the increase in home sales in December 2024?

Easing mortgage rates and renewed buyer confidence were key drivers of the 31.2% year-over-year increase in December sales.

Q2: Which property type saw the highest price growth in 2024?

Attached homes experienced the highest growth, with a 3.4% annual increase in benchmark prices.

Q3: How did listings in 2024 compare to previous years?

Listings in 2024 rose by 18.7% from 2023 and surpassed the 10-year annual average by 5.7%.

Q4: Is the market expected to improve in 2025?

Yes, with declining borrowing costs and December’s strong sales figures, 2025 is expected to be more active.

Q5: Why did apartment prices remain flat in 2024?

Apartment prices in 2024 remain flat inspite of lower BOC poilcy rate and the introduction of mortgage rule reforms and the introduction of policies that benefits first-time homebuyers. Slower buyers demand and accumulating inventory level together with capital gain tax or hiked property taxes, also contribute to market stability. Economic uncertainty and investor hesitation further dampen price momentum. For buyers, this could be a good opportunity to enter the market without the pressure of rising prices.

Q6: What is the sales-to-active listings ratio, and why is it important?

This ratio indicates market balance. Ratios above 20% suggest upward pressure on prices, while below 12% indicates downward pressure.

Conclusion

2024 was a transformative year for Metro Vancouver’s real estate market. With rising sales and robust inventory levels, the market displayed resilience amidst challenges. December’s strong performance signals a promising start to 2025, positioning the market for growth as economic conditions continue to improve.