"Hesitant" buyers keep home sales slow across the Lower Mainland

"Hesitant" buyers keep home sales slow in Metro Vancouver and the Fraser Valley

Burnaby's skylines of Brentwood Town Centre (foreground) and Metrotown (background). (StandbildCA/Shutterstock)

Despite the Bank of Canada’s long-awaited policy interest rate cut at the start of last month, home sale activity across the Lower Mainland in June 2024 remained sluggish, according to new statistics from Greater Vancouver Realtors (GVR) and the Fraser Valley Real Estate Board (FVREB).

Home sales within GVR’s jurisdiction totalled 2,418 units throughout June 2024, representing a 19.1% drop from June 2023 and a 23.6% trending dip below the 10-year seasonal average.

Due to reduced competition amongst buyers, the number of active listings in GVR continued to rise to levels not seen since Spring 2019.

The total number of homes listed for sale as of the end of June 2024 reached 14,182 units, representing a 42% jump from June 2023, and a 20% increase over the 10-year seasonal average. This includes the 5,723 units that were newly listed for sale within GVR in June 2024, which is a 7% uptick from the same month last year, and a 3% uptick over the 10-year seasonal average.

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“The June data continued a trend we’ve been watching where buyers appear hesitant to transact in volumes we consider typical for this time of year, while sellers remain keen to bring their properties to market,” said Andrew Lis, the director of economics and data analytics for GVR, in a statement.

“This dynamic is bringing inventory levels up to a healthy range not seen since before the pandemic. This trend is providing buyers more selection to choose from and driving all market segments toward balanced condition.”

Over in FVREB’s jurisdiction, the number of sales in June 2024 reached 1,317 units, which is down by 30% compared to both June 2023 and the 10-year seasonal average, and down by 13% compared to May 2024.

The number of listings within FVREB increased for the sixth consecutive month to 8,350 units, representing a 41% increase from June 2023. This is the highest level of active listings in five years, even though the number of new listings dropped month-over-month in June 2024 — down by 9% compared to May 2024.

“With seasonally slow sales in June and a steady increase in inventory, we’d expect to see affordability improve. However, prices in the Fraser Valley remained relatively flat. That said, despite slow sales, properties that are well-priced are finding buyers, and are subsequently selling within three to four weeks,” said Jeff Chadha, chair of the FVREB, in a statement.

GVR’s Lis added, “With an interest rate announcement from the Bank of Canada in July, there is a possibility of another cut to the policy rate this summer. This is yet another factor tilting the market in favour of buyers, even if the boost to affordability is modest. But June’s lower-than-normal transaction volumes suggest many buyers remain hesitant, which has allowed inventory to accumulate and has kept a lid on upward price pressure across market segments.”

GVR’s jurisdiction covers Vancouver, Burnaby, New Westminster, Richmond, South Delta, Coquitlam, Port Coquitlam, Port Moody, North Vancouver, West Vancouver, Pitt Meadows, Sunshine Coast, Squamish, and Whistler. Until recently, GVR was known as the Real Estate Board of Greater Vancouver (REBGV). Other areas such as Surrey, Langley, North Delta, White Rock, Mission, and Abbotsford are part of the separate FVREB.

The benchmark home price within GVR reached $1.207 million in June 2024, representing a 0.5% increase over June 2023 and a 0.4% drop from May 2024. Within FVREB, the benchmark price reached $1.002 million, which is a 3.2% drop over June 2023 and a 0.5% decrease from May 2024.

Greater Vancouver Realtors: June 2024 statistics
- Detached homes
  - Number of units sold: 694 (-18.2% over June 2023)
  - Benchmark price: $2,061,000 (+3.7% over June 2023; -0.1% over May 2024)
  - Average days on market: 31 (up from 26 days in May 2024)
- Condominiums
  - Number of units sold: 1,245 (-20.9% over June 2023)
  - Benchmark price: $773,400 (+1.0% over June 2023; -0.4% over May 2024)
  - Average days on market: 24 (unchanged from 24 days in May 2024)
- Townhomes
  - Number of units sold: 456 (-16.6% over June 2023)
  - Benchmark price: $1,138,100 (+3.0% over June 2023; -0.6% over May 2024)
  - Average days on market: 21 (down from 23 days in May 2024)
Fraser Valley Real Estate Board: June 2024 statistics
- Detached homes
  - Number of units sold: 452 (-33.5% over June 2023)
  - Benchmark price: $1,528,900 (+0.5% over June 2023; -0.1% over May 2024)
  - Average days on market: 22 (down from 25 days in May 2024)
- Condominiums
  - Number of units sold: 396 (-30.6% over June 2023)
  - Benchmark price: $555,100 (+0.4% over June 2023; -0.7% over May 2024)
  - Average days on market: 30 (up from 23 days in May 2024)
- Townhomes
  - Number of units sold: 474 (-28.3% over June 2023)
  - Benchmark price: $851,100 (+0.8% over June 2023; -0.3% over May 2024)
  - Average days on market: 20 (unchanged from 20 days in May 2024)

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