Metro Vancouver's real estate market wrapped up 2024 with a strong showing, indicating a pickup in buyer interest as we head into the new year. Throughout 2024, realtors saw over 26,500 home sales on the MLS. While the start of the year was a bit slow, things really picked up in the latter months, including December. These recent sales numbers are now getting closer to the usual long-term averages, which suggests there could be more room for sales to grow in 2025.
On the supply side, about 6,400 homes were listed on the MLS in 2024. That's a 19% jump compared to 2023. By the end of the year, there were around 11,000 homes available for sale across the region on the MLS.
Key Takeaways
- Sales activity picked up significantly in the latter half of 2024, moving towards historical averages.
- Home listings saw a notable increase compared to the previous year.
- The sales-to-active-listings ratio ended the year in a balanced territory, with some property types showing stronger demand.
- Overall benchmark prices saw a modest increase, with detached and attached homes leading the way.
- Declining borrowing costs are expected to fuel a more active market in 2025.
Understanding Supply and Demand
To get a better handle on what's happening with supply and demand, we can look at the sales-to-active-listings ratio. This ratio compares the number of homes available for sale to the number of homes that actually sold during a month.
Historically, when this ratio stays below 12% for a while, home prices tend to go down. On the other hand, when it goes above 20% for several months, prices often start to climb.
At the end of 2024, this ratio for all homes in Metro Vancouver was 17.7%. Breaking it down by property type:
- Detached Homes: 12%
- Attached Homes: 24%
- Apartments: 19%
Price Trends in 2024
Home prices started 2024 on an upward trend but ended the year on a flatter note. The MLS HPI Benchmark Price for all housing types in Metro Vancouver is currently sitting at $1,171,000. This is about a half percent higher than in 2023.
Looking at specific property types:
- Detached and Town Homes: Saw year-over-year price increases.
- Apartments: Ended 2024 pretty much flat compared to the previous year.
Looking Ahead to 2025
Overall, 2024 can be seen as a bit of a turning point for the market. After dealing with big jumps in mortgage rates in the years before, the market in 2025 is shaping up to be much busier than we've seen recently. With borrowing costs now steadily going down, buyers are starting to come back in larger numbers after a bit of a break. This is building momentum for sales as we move into the new year.
From everyone at Greater Vancouver Realtors, we wish you a happy and healthy 2025!
