After a busy January with a lot of new homes hitting the market, February saw seller activity settle down a bit, getting closer to what we usually see this time of year. This helped keep things pretty balanced in the Metro Vancouver housing market.
February Market Snapshot
In February, about 5,000 homes were listed on the MLS in the region. That's an 11% jump compared to February 2024 and about 12% more than the 10-year average. By the end of the month, there were roughly 12,700 homes for sale across Metro Vancouver, which is 36% higher than the usual number for February.
On the demand side, realtors recorded about 1,800 home sales in February. This is a 12% drop from the same time last year and about 29% below the 10-year average. These numbers are helping to keep the market in a balanced state.
Key Takeaways
- Seller activity in February was more in line with historical averages after a surge in January.
- The number of homes for sale is significantly above the seasonal average.
- Home sales were down compared to last year and the 10-year average.
- The market is currently in balanced territory, with stable prices.
- Potential interest rate changes and new tariffs could influence the spring market.
Understanding Market Balance
One way to gauge market balance is by looking 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 the month. It gives us a good idea of supply and demand.
Historically, when this ratio stays below 12% for a while, home prices tend to go down. On the flip side, when it goes above 20% for a few months, prices usually start to climb. Right now, the market is sitting in balanced conditions.
At the end of February, this ratio was 15% for all types of homes. Breaking it down by property type:
- Detached Homes: 11%
- Attached Homes (Townhomes): 19%
- Apartments: 17%
Price Trends
Balanced market conditions usually mean that home prices don't change too drastically. We've seen prices across all property types stay pretty steady for the last few months. In February, the MLS HPI Benchmark Price for all housing types in Metro Vancouver was around $1,169,000. This is a 1% increase from last year.
Here's a look at the benchmark prices by property type:
- Detached Homes: Just over $2 million
- Townhomes: $1,187,000
- Apartments: $747,000
What's Next?
Looking ahead, there's talk of the Bank of Canada possibly cutting interest rates in mid-March. If that happens, borrowing might become a bit cheaper for home buyers. Plus, with the spring market usually being quite busy, buyers might have a good selection of homes to choose from. However, new tariffs could also affect how things play out. We'll have to wait and see how it all unfolds.
