May 2024 Market Statistics

 
 
We're almost to the beginning of the summer season and the real estate market is still hibernating. There has been activity in home sales but generally the market is slow. Buyers are waiting on the sidelines, hoping for some relief from the banks. As of June 5th, the Bank of Canada has lowered their base lending rate by 25 (whole) basis points. Hopefully, this is just the start of a downward trend. The next meeting will be on July 24th.
  
 
GVR (Formerly REBGV): METRO VANCOUVER HOME SALES DOWN IN MAY WHILE INVENTORY CONTINUES TO INCREASE
 
“The surprise in the May data is that sales have come in softer than what we’d typically expect to see at this point in the year, while the number of newly listed homes for sale is carrying some of the momentum seen in the April data,” Andrew Lis, GVR’s director of economics and data analytics said. “It’s a natural inclination to chalk these trends up to one factor or another, but what we’re seeing is a culmination of factors influencing buyer and seller decisions in the market right now. It’s everything from higher borrowing costs, to worries about the economy, to policy interventions imposed by various levels of government.”

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 13,600, a 46% increase compared to May 2023 (9,293). This total is also up 20% above the 10-year seasonal average (11,344).

“With market trends now tilting back toward more balanced conditions, as the number of new listings outpaces the number of sales, we should expect to see slower price growth over the coming months,” Lis said. “Up until recently, prices were climbing modestly across all market segments. But with rising inventory levels and softening demand, buyers who’ve been waiting for an opportunity might have more luck this summer, even if borrowing costs remain elevated.”

LINK to the May 2024 REBGV statistics.
 
 
FVREB: SPRING INVENTORY CONTINUES TO BUILD IN THE FRASER VALLEY TO LEVELS NOT SEEN IN NEARLY FIVE YEARS
 
Slower seasonal sales helped build inventory to its highest level since September 2019 in the Fraser Valley in May, creating more balanced market conditions for home buyers and sellers. The increase in supply over the past several months has further contributed to a softening of price growth, which is good news for buyers.
Active listings increased eight per cent from April to May to 7,904 — up 42 per cent over May 2023 and 19

“We are seeing an influx of inventory this spring, primarily due to slower than usual spring sales,” said Jeff Chadha, Chair of the Fraser Valley Real Estate Board. “Growing inventory levels are helping to create a healthy balance in the market, giving buyers more options, especially as prices continue to flatten.”

“While the consensus seems to indicate rate cuts in the latter half of the year, there is considerably less agreement about either magnitude or timing,” said FVREB CEO Baldev Gill. “We strongly encourage buyers to have comprehensive discussions with their REALTORS® about market conditions and how they will impact mortgage rates in the coming year.”
 
LINK to the May 2024 FVREB statistics.
 
 
VIREB: MORE INVENTORY BENEFITS BOTH BUYERS AND SELLERS

VIREB Chief Executive Officer Jason Yochim says that the typically busy spring market is slow to launch this year. “Last month, we were optimistic that the spring market had finally arrived,” says Yochim. “However, while sales did pick up somewhat in May, we’re still not where we usually are heading into summer.” Yochim notes there are likely several reasons fueling VIREB’s lagging sales, including investor concerns surrounding higher capital gains taxes and consumer worries regarding long-term affordability. Some buyers are also waiting for interest-rate cuts.

“On a positive note, VIREB’s inventory of single-family homes rose by 46% in May, while active listings of all property types are up by 33% board-wide,” says Yochim. “The VIREB market is now in balanced territory, which is great news for buyers and sellers.”
 
LINK to the May 2024 VIREB statistics.
 
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