15 Jul 2024
GVR Market Update For June 2024 – A Significant Downturn Appears To Be Building
The June 2024 market report released by the Greater Vancouver Realtors (GVR) reported that the market is shifting in buyers’ favor as June sales were slow, and we just saw the second consecutive month of sales lowering month over month. It seems that the rate cut that many thought would bring buyers, has actually brought sellers, so far as can be seen in the new listings and inventory numbers.
“The June data continued a trend we’ve been watching where buyers appear hesitant to transact in volumes we consider typical for this time of year, while sellers remain keen to bring their properties to market,” Andrew Lis, director of economics and data analytics said.
“This dynamic is bringing inventory levels up to a healthy range not seen since before the pandemic. This trend is providing buyers more selection to choose from and driving all market segments toward balanced condition.”
Home Sales
In June 2024, there were 2,418 recorded residential property sales. This represented a 19.1% decrease from the 2,988 sales in June 2023 and was 23.6% below the 10-year seasonal average of 3,166. It was the slowest June dating back to 2019.
The number of detached properties sold was 694, 18.2% less than the 848 recorded in June 2023.
The number of apartments sold was 1,245, 20.9% less than the 1,573 recorded in June 2023.
The number of attached properties sold was 456, 16.6% less than the 547 recorded in June 2023.
Home Listings
There were 5,723 new listings of detached, attached and apartment properties for June 2024 added to the Multiple Listing System (MLS). This represented a 7% increase compared to the 5,347 homes listed in June 2023. This total is 3% higher than the 10-year seasonal average of 5,554.
The total number of homes listed for sale in June on the MLS was 14,182, a 42% increase compared to June 2023 (9,990). This is 20.3% above the 10-year average of 11,790.
Sales-To-Active-Listings Ratio
This is a good indication of the supply and demand forces in the market. Downward pressure on home prices can occur when the ratio is below 12% for a sustained period, and there is upward pressure when the ratio is above 20% for a number of months.
For all property types, the ratio in June was 17.6%. When broken down by property types, the ratio was:
- 13.1% for detached homes
- 21.1 % for townhomes
- 20.3% for condominiums