2023 Market Review

Despite facing challenges such as a surprise rate increase in late spring/summer, the market demonstrated resilience, rebounding in the fall after a promising recovery was initially dampened. A key factor influencing the market dynamics was the scarcity of inventory, pushing prices upward.Buyer motivation was notably driven by the increased costs of rents, which had surged over the past year. This, coupled with the influx of cash-heavy investors, contributed to the market's dynamics and influenced buyer behavior.As the real estate landscape transitions into 2024, forecasts indicate a potential decrease in interest rates, aligning with the Bank of Canada's inflation targets. Additionally, the substantial number of mortgages set for renewal in the coming two years is expected to play a role in shaping market conditions.Sales in Metro Vancouver's housing market exhibited resilience despite facing the highest borrowing costs in a decade. Residential sales for the year reached 26,249, marking a 10.3% decrease from 2022. However, a surprising 5%+ increase in home prices across all segments suggested sustained buyer interest and attractiveness in the market.Listings on the Multiple Listing Service® (MLS®) recorded 50,893 properties listed in Metro Vancouver in 2023, reflecting a 7.5% decrease from 2022. With 8,802 homes currently for sale, there has been a 13% increase from December 2022. The MLS® Home Price Index (HPI) benchmark price, standing at $1,168,700, indicated a 5% rise from December 2022. The market's struggle with limited inventory relative to demand impacted sales dynamics throughout the year.The MLS® Home Price Index composite benchmark price for Metro Vancouver's residential properties, at $1,168,700, showcased a 5% increase from December 2022. Andrew Lis, REBGV's director, emphasized the theme of limited available homes, resulting in near record-low inventory. The sales-to-active listings ratio of 16% for December 2023 suggests a balanced market.Looking ahead, there is anticipation of potential market shifts in 2024, with projections of modest rate cuts in the first half of the year.
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