Metro Vancouver sees increased housing supply, but what about prices? | Daily Hive

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As we approach the end of 2023, the weather isn’t the only thing cooling down this season.

According to the Real Estate Board of Greater Vancouver (REBGV), residential sales in the region increased 4.7% and reached 1,702 in November 2023.

That’s up from the 1,625 sales recorded during the same month last year.

“We’ve been watching the number of active listings in our market increase over the past few months, which is giving buyers more to choose from than they’ve been used to seeing over the past few years,” says Andrew Lis, the director of economics and data analytics at REBGV.

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Since the summer, prices have decreased but are still not in reach for the average person to purchase a home.

According to the MLS Home Price Index, the composite benchmark price for residential properties in Metro Vancouver is $1,185,100, which is up 5% from this time last year, but down a little bit from last month.

Data analysis from the REBGV shows that home prices decrease when the sales-to-active listing ratio falls below 12% for a prolonged period, and increase when it exceeds 20% over several months.

“You probably won’t find Cyber Monday discounts, but prices have edged lower by a few percent since the summer. And with most economists expecting mortgage rates to fall modestly in 2024, market conditions for buyers are arguably the most favourable we’ve seen in some time in our market,” said Lis.

He says this increase in inventory and cooling of prices is often expected to happen late in the year.

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“When paired with the seasonal slowdown in sales we typically see this time of year, this increase in supply is creating balanced conditions across Metro Vancouver’s housing market,” said Lis.

In Metro Vancouver, there are currently 10,931 properties listed for sale on the MLS system, which is a 13.5% increase from November 2022 (9,633).

In November of this year, 3,369 properties were newly listed for sale on MLS in Metro Vancouver, marking a 9.8% increase from November 2022.

Here is how other housing formats have increased in availability from last year:

Detached home sales in November

Real Estate Board of Greater Vancouver Analysis

In November, the ratio was 12.7% for detached homes.

Attached home sales in November

Real Estate Board of Greater Vancouver Analysis

Attached home sales increased by 19.8% in Metro Vancouver.

Apartment sales in November

Real Estate Board of Greater Vancouver Analysis

Sales also increased 18.2% for apartments, totalling a 16.3% increase for all residential properties overall.