- Metro Vancouver will continue to remain a balanced market in 2024.
- Semi-detached homes are likely to see the greatest demand in this region.
- First time homebuyers and move up families are looking at semi-detached, as well as condo homes between $1,100,000 and $1,500,000 in Main, Mount Pleasant and Kitsilano.
- In the luxury segment, younger adults specifically within the tech sector, are purchasing new construction and builds starting at $4,000,000 and up.
Between 2022 and 2023, the average sale price in the Metro Vancouver housing market rose by 4.2%, increasing from $1,437,253 to $1,497,546. However, the number of sales dropped by 14.5%, from 7,715 in 2022 to 6,600 in 2023. Currently, Metro Vancouver is experiencing a balanced housing market, a trend expected to persist into 2024. The first two quarters of 2024 are likely to see a continued decline in interest rates, which could incentivize buyers to re-enter the market and boost demand. The average residential sale price is forecasted to rise by 2%, while unit sales are projected to decrease by 3% due to ongoing limited inventory and the lingering economic impact of the cost of living and interest rates. Despite the anticipated decrease in unit sales, there is potential for year-over-year value increases, which will be reflected in overall property prices.
In 2024, the top three sought-after neighborhoods in Metro Vancouver are expected to be Main, Mount Pleasant, and Kitsilano. Livability trends indicate that cost of living, access to amenities, and public transportation are key factors driving demand and sales activity for semi-detached houses, a trend that will continue in 2024. The main factors affecting the local housing market conditions in Metro Vancouver are interest rates, the general cost of living, and low inventory levels. Demand is likely to fluctuate, especially as the region continues to experience depleted housing inventory, ultimately shaping market conditions in Metro Vancouver now and into 2024.
“Like many other markets across Canada, interest rates significantly influence the market here in Metro Vancouver. For example, the recent pause on rates by the Bank of Canada (BoC) could lead to lower bond yields, which should result in lower fixed-rate mortgages—a welcome outcome for homebuyers, especially first-timers,” says Tim Hill, Real Estate Advisor at RE/MAX All Points Realty. “We anticipate a 2% increase in overall prices in 2024, alongside a 3% decrease in sales activity. The primary reasons for this are the lack of housing inventory and an increasingly competitive market, which continue to drive demand.”