If you’ve noticed the weather feeling a tad cooler compared to last spring, you might take some solace in knowing that the real estate market isn’t quite as scorching either, especially for buyers. Despite a welcomed increase in inventory, the market continues to lean further into sellers’ territory, indicating persistent demand for well-priced and well-situated properties.
In March 2024, residential sales in the region totaled 2,415, marking a 4.7 percent decline from the 2,535 sales recorded in March 2023. This figure also fell 31.2 percent below the 10-year seasonal average of 3,512.
Across all property types—detached, attached, and condos—the sales-to-active listings ratio for March 2024 stands at 23.8 percent. Broken down by property type, the ratio is 18.2 percent for detached homes, 31.3 percent for attached, and 25.8 percent for condos. Analysis of historical data indicates downward pressure on home prices when the ratio consistently dips below 12 percent, while prices tend to rise when it exceeds 20 percent over several months.
Although the market isn’t as hot as it was in 2021/2022, we’re still seeing prices rise modestly, about one to two percent each month overall. This is interesting because borrowing money is more expensive right now. While we’re hopeful for a couple of small cuts to the Bank of Canada’s policy rate in 2024, it might not make the big difference in affordability that some people are hoping for.
Now, let’s take a closer look at our local housing market:
CONDOS/TOWNHOUSES:
The condo and townhouse markets largely remain in a seller’s market, with the exception of downtown Vancouver, which is currently experiencing a balanced market. In March, Maple Ridge witnessed an increase in inventory, sales, and the average sale price, surpassing figures from both the previous month and March 2023. The average sale price now exceeds that of the entire year 2023, indicating a consistent growth trend in inventory and sales.
DETACHED HOUSES:
Shifting our focus to the detached housing market in the Greater Vancouver area and the Fraser Valley, we observe a seller’s market prevailing in most regions, except for East Vancouver, Surrey, and South Surrey/White Rock, which are currently experiencing balanced markets. In Maple Ridge, we witnessed a rise in the number of sales throughout March, albeit with a slight decrease in inventory compared to February. Additionally, the average sale price saw a minor decline between February and March. Sellers holding properties in Albion and those with 3 to 4 bedrooms seem to have the most favourable opportunities in this market.
MARKET PREDICTION:
Toward the end of March, we noticed a slight slowdown in the market, likely due to spring break and the long weekend. As we transition into the spring/summer season, we expect the market to become busier. Sellers are gearing up to list their properties, resulting in a consistent increase in inventory. Concurrently, with improving weather and increased listings, we foresee an increase in buyer activity. Nonetheless, we don’t anticipate seeing listings sell significantly above their asking prices. With limited inventory, we project a modest increase in prices. While multiple offer situations are anticipated, they are not expected to be as intense as those experienced in 2021 and 2022. Nevertheless, properties priced at market value may still attract multiple offers and sell swiftly.
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If you have been thinking about buying or selling recently, feel free to reach out. We can create a customized plan to help you achieve your goals in 2024. Curious about your market value? Send me a quick note, and I can run some numbers based on the current market and pricing forecasts. Don’t hesitate to contact me for a detailed property analysis or an in-depth discussion about a specific area. I am always happy to help.