April 2024 Real Estate Market Update for Greater Vancouver

The housing market in Metro Vancouver is experiencing significant shifts, with inventory levels reaching their highest point since the summer of 2020. According to reports from Greater Vancouver REALTORS®, actively listed homes for sale on the MLS® have increased by 42% year-over-year, surpassing 12,000 listings. This surge in inventory is mirrored by a substantial rise in newly listed properties, with detached, attached, and apartment listings in April 2024 up by 64.7% compared to the previous year.

Despite the increase in inventory, residential sales in the region saw only a modest uptick of 3.3% compared to April 2023, totaling 2,831 sales, which is still notably below the 10-year seasonal average. The total number of properties listed for sale on the MLS® system in Metro Vancouver has reached 12,491, marking a 42.1% increase from April 2023.

The sales-to-active listings ratio for April 2024 stands at 23.5%, indicating a balanced market. However, different property types show varying ratios, with attached homes having the highest ratio at 31.0%, followed by apartments at 26.0%, and detached homes at 17.6%. Analysis suggests that downward pressure on home prices occurs when the ratio dips below 12%, while upward pressure is experienced when it surpasses 20% over several months.

Interestingly, despite the increase in inventory, home prices have continued to climb across most segments. The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,205,800, showing a 2.8% increase over April 2023. However, apartments saw a slight decline in prices by 0.1% month-over-month, likely influenced by factors such as higher mortgage rates and increased inventory in this more affordability-sensitive segment.

Sales of detached homes, apartments, and attached homes all saw moderate increases compared to April 2023, with corresponding benchmark price increases. Detached homes saw a 6.3% increase in benchmark price, reaching $2,040,000, while apartments saw a 3.2% increase, with a benchmark price of $776,500. Attached homes experienced a significant 16% increase in sales compared to April 2023, with a benchmark price of $1,127,200, up 4.3% from the previous year.

Overall, while the increase in inventory suggests a more balanced market, the continued climb in home prices amidst higher inventory levels raises questions about the sustainability of this trend and its potential impact on affordability in the Metro Vancouver housing market.