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| Name | Vancouver Real Estate Market Update for July 2024 |
| Video Uploader | Video From Living In Vancouver - Vancouver Life Real Estate |
| Upload Date | This Video Uploaded At 06-07-2024 13:00:06 |
| Video Discription | The Vancouver real estate market has largely held strong in 2024, with prices rising for the first five months. However, a significant downturn appears to be building. High interest rates for two years, a ten-year low in sales volumes, and a spike in consumer and business insolvencies are all pointing to a decline in real estate prices. The June numbers are out, and we’ll dive into them to discuss how low prices may go. Additionally, we’ll provide updates on insolvency figures, the SSMUH initiative, and new tenant laws requiring landlords to give four months’ notice if the new owner plans to live in the property. June's total sales were 2,398, down 19% year-over-year and 13% month-over-month, marking the second consecutive monthly decline and the slowest since 2019. With sales 24% below the ten-year average and rising inventory levels, owners are choosing to stay in their homes, while buyers remain hesitant. The expected rate cuts did not bring buyers but instead increased new listings and inventory. June saw 5,737 new listings, a 7% increase year-over-year, and a 3% rise above the ten-year seasonal average, marking the third month of elevated listings. This year has seen more listings than usual, with sellers eager to get deals done, whether for more space or relocations due to work. Inventory stood at 13,405, up 0.5% month-over-month and 35% year-over-year, reaching a four-year high and 20% above the ten-year average. Detached homes and townhouses saw an increase in inventory, while condos decreased, likely due to affordability issues. With sales 24% below the ten-year average and inventory 20% above, more price adjustments feel inevitable. The sales-to-active ratio fell to 18%, down 3% month-over-month, indicating a balanced market for the first time since January. The ratios for detached homes, townhomes, and apartments all dropped, suggesting a continued downward trend over the summer. Prices, which had been increasing every month of 2024, saw a decline in June. The Home Price Index (HPI) dropped by $5,000 to $1,207,000, though it remained up 0.5% year-over-year. The median price fell by $18,000 to $980,000, and the average price rose by $2,000 to a new all-time high of $1,350,000. However, with high rates, spiking inventory, and low sales, a peak in HPI prices for this cycle appears to have been reached, and a decline is expected over the next four months. Days on market increased to 14, the highest since February. Homes priced accurately should sell in about two weeks; otherwise, they may be overpriced. This metric will likely rise through the summer, correlating with falling prices. Insolvencies are a growing concern, with consumer and business insolvencies in British Columbia, Alberta, Ontario, and Quebec rising by 1,750% since mid-2022. This financial stress will likely lead to business layoffs and forced property sales, further driving prices down. New tenant laws effective July 18th require landlords to give four months’ notice to tenants for personal use. This change could complicate transactions and mortgage approvals, making rental properties harder to sell and potentially pushing rental prices up as investors withdraw from the market. Housing affordability remains a contentious issue. The Small Scale Multi Unit Housing initiative has increased city fees, adding significant costs to new developments. For example, parkland acquisition fees and regional water fees are set to rise dramatically over the next three years. The city's increasing fees, along with other costs associated with new developments, contribute significantly to affordability challenges. In response to the SSMUH initiative, 113 development permit applications have been submitted, mainly for triplexes and fourplexes, with 19% for six-plexes. However, there have been no applications for eight-unit rental buildings due to high costs and poor financial incentives. This lack of incentive highlights the inadequacy of current policies in addressing affordability and density issues. While the Vancouver real estate market has shown resilience in early 2024, multiple factors are now converging to indicate a potential downturn in prices and lower sales volumes. High interest rates, rising inventory, low sales, increasing insolvencies, and new regulatory challenges are expected to exert downward pressure on prices for the foreseeable future. _________________________________ Connect With Us To Talk Real Estate: 📆 https://calendly.com/thevancouverlife 🏡 Visit our website to see active listings and valuable Real Estate information 🏡 → The Vancouver Life: https://bit.ly/3yN25V7 💥 Follow us on Social Media 💥 → Instagram: https://bit.ly/3jSkRo1 → Twitter: https://bit.ly/3xMGFpZ The Vancouver Life Real Estate Group are licensed Real Estate Agents at eXp Realty Vancouver / eXp Realty Canada: 🏆 Top 10% Medallion Club Members 2019 to 2023 🏆 Over $400,000,000 in sales www.thevancouverlife.com |
| Category | Education |
| Tags | Vancouver real estate market | 2024 real estate trends | rising real estate prices | real estate downturn | high interest rates | consumer insolvencies | business insolvencies | real estate price decline | June real estate numbers | SSMUH initiative | tenant laws | real estate inventory | rental property sales | rental prices | housing affordability | development fees | real estate trends 2024 | Vancouver housing market | real estate forecast | housing market downturn | real estate updates |
