The December 2023 Real Estate Board of Greater Vancouver (REBGV) market report showed that despite the highest borrowing costs seen in over a decade, December home sales rose compared with a year earlier, and the region closed with balanced market conditions.
In his monthly comment, Andrew Lis, REBGV director of economics and data analytics said,” You could miss it by just looking at the year-end totals, but 2023 was a strong year for the Metro Vancouver housing market considering that mortgage rates were the highest they’ve been in over a decade.
“In our 2023 forecast, we called for modest price increases throughout the year while most other forecasters were predicting price declines. The fact that we ended the year with five per cent plus gains in home prices across all market segments demonstrates that Metro Vancouver remains an attractive and desirable destination, and elevated borrowing costs alone aren’t enough to dissuade buyers determined to get into this market,” Lis said.
Home Sales
2023 December sales of detached, attached and apartment properties totaled 1,345, a 3.26% increase from December 2022. December sales were 22.7% below the 10-year seasonal average of 1,716.
Home Listings
There were 1,327 newly listed residential homes for December on the Multiple Listing Service (MLS). This represented a 9.9% increase compared to the 1,208 properties listed in December 2022.
Total number of homes listed for sale in the MLS was 8,802. This represented a 13% increase compared to 7,791 homes listed in December 2022, and a 1.4% decrease when compared to November 2023.
Sales-To-Active Listings Ratio
The December ratio was 16%. By property type, the ratio was 11.1% for detached homes, 19.6% for condos and 18.7% for townhomes. When compared to the previous few months, the ratio has not changed much.
When this ratio is at 12% or below for a sustained period, there is downward pressure on home prices, and when it is above 20%, there is upward pressure.
House Prices
The benchmark price for a detached home in the region was $1,964,400 – an increase of 7.7% when compared to December 2022. The benchmark price for an apartment in the region was $751,300 – an increase of 5.6% when compared to December 2022. The benchmark price for an attached home in the region was $1,072,700 – an increase of 6.4% when compared to December 2022.
Get the full report here.
The market is beginning to stabilize after the interest rate hikes have kept many on the sidelines, and attitudes started to shift after the Bank of Canada’s September announcement that it would hold its key interest rate steady as inflation slowed. If you have any questions about this topic or any other real estate related topic, do not hesitate to contact us.