Does this mark a pivot point for the market?
Home sales in Greater Vancouver saw a significant increase in December, closing out a year described by the region’s real estate board as a “pivot year” for the housing market.
The board reported 1,765 home sales last month, a 31.2% rise from December 2023. However, the figure remained 14.9% below the 10-year seasonal average for December.
The Greater Vancouver REALTORS (GVR) highlighted a notable surge in newly listed properties, with 1,676 homes entering the market last month—a 26.3% year-over-year increase.
The region’s composite benchmark price for residential properties reached $1,171,500 in December, representing a slight 0.5% increase from December 2023. Prices remained steady compared to November 2024, slipping only 0.1%.
Andrew Lis, the board’s director of economics and data analytics, noted the market’s resilience despite a slow start to 2024. “Although sales activity had a slower start to the year, price trends began 2024 on the rise and closed out the year on a flatter trajectory,” Lis said in a statement. He expressed optimism for 2025, citing “renewed strength to finish the year.”
Broader trends in 2024
The year as a whole saw mixed results for Metro Vancouver’s housing market. Total home sales in 2024 increased by 1.2% compared to the previous year, reaching 26,561 transactions. Despite the uptick, sales were still 20.9% below the 10-year annual average.
The number of properties listed in Metro Vancouver throughout the year rose to 60,388, an 18.7% increase from 2023 and 5.7% above the 10-year annual average. At year-end, the region had 10,948 active listings, a 24.4% rise from December 2023 and about 25% higher than the 10-year seasonal average.
BC Assessment data, which reflects market conditions as of July 1, 2024, revealed stability in property values across the province. Prices in major urban areas, including Vancouver, Victoria, and Kelowna, fluctuated within a range of plus or minus 3%. In Vancouver, average residential prices dipped by 0.8%, while Victoria and Kelowna saw declines of 2% and 2.9%, respectively.
Market outlook
Lis emphasized the transformative nature of 2024 for the housing market, pointing to declining borrowing costs as a key factor. “Looking back on 2024, it could best be described as a pivot year for the market after experiencing such dramatic increases in mortgage rates in the preceding years,” he said.
With borrowing costs easing and buyer activity rebounding, the real estate board predicts a more active market in 2025.
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