There are signs of new life in the real estate market this spring, both across the province and in the Lower Mainland.
While Metro Vancouver home sellers appeared somewhat hesitant in January, new listings rose 31 per cent year-over-year in February, bringing a significant number of newly listed properties to the market.
Greater Vancouver Realtors report residential sales in the region totalled 2,070 in February 2024 – a 13.5 per cent increase from the 1,824 sales recorded in February 2023. This was still 23.3 per cent below the 10-year seasonal average (2,699).
Commenting on his observations in Maple Ridge and Pitt Meadows, local realtor Matt Olson said there was a dip in the market last fall and through the winter, but buyers have been encouraged by the Bank of Canada signalling that mortgage rates will not be increasing. The central bank last raised interest rates in July.
“Over the last eight weeks, we’ve really seen the market pick up,” said Olson. “Buyers have confidence since the Bank of Canada has held interest rates.”
“Buyers came out of the woodwork.”
Sales in Ridge Meadows over December, January and February are up across all property types compared to the same time frame a year ago – and 201 houses sold was an increase of 18 per cent, 101 townhouses was up 23 per cent, and 107 apartment sales was a 53 per cent increase.
Olson said the local market is busiest for properties in the $1 million to $1.2 million price range at the moment, and properties that are well priced are moving.
He said some buyers are again finding themselves in competitive bidding situations.
The local market is still comparatively affordable. The benchmark price of a house in the Greater Vancouver area in February was pegged at $1.97 million, and in Maple Ridge $1.26 and Pitt Meadows $1.3 Million.
Townhouses in Greater Vancouver had a benchmark price of $1.1 million compared with $760,000 in Maple Ridge and $814,000 in Pitt Meadows.
A Greater Vancouver apartment benchmark price was $770,000, and Maple Ridge $533,000 and Pitt Meadows $609,000.
Olson said he is seeing more locals who are move-up buyers, along with “buyers from across the bridges,” looking to move from communities like Burnaby and Coquitlam.
Across the province, the BC Real Estate Association (BCREA) reported 3,979 residential unit sales were recorded in MLS systems in January 2024, which was an increase of 29.4 per cent from January 2023. The average price in BC in January 2024 was up 10.5 per cent at $957,909 compared to an average price of $866,922 – the low-point for average prices over the past two years.
The total sales dollar volume was $3.8 billion, an increase of 42.9 per cent from the same time in the previous year.
“Home sales are on a clear uptrend to start 2024,” said BCREA economist Brendon Ogmundson.
His comments echoed Olson’s: “A sharp decline in fixed mortgage rates and expectations for future Bank of Canada rate cuts is driving sentiment in the market and bringing pent-up demand off the sidelines.”
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