A new report from RE/MAX reveals that softer market conditions have dominated the Greater Vancouver and Fraser Valley condo markets throughout much of 2024. Condominium apartment sales have declined across the board, with year-to-date sales in Greater Vancouver from January to August totaling 9,248—a drop of just over eight percent compared to the same period in 2023, according to Greater Vancouver REALTORS.
“Neighbouring Fraser Valley reported just 3,130 condos changing hands between January and August of this year, down 8.5 per cent from year-ago levels. Values continue to climb in the Fraser Valley, where the overall average price year-to-date for apartment units is up two per cent year-over year ($559,215/$548,658) according to the Fraser Valley Real Estate Board, while Vancouver has edged up two per cent to $823,550 in 2024, compared to $807,085 in 2023” (RE/MAX Canada, 2024).
Home-buying activity surged in both Greater Vancouver and the Fraser Valley earlier this year, driven by the anticipation of interest rate cuts in April. However, once it became clear that rates would remain steady until at least June or July, the market's momentum slowed considerably. Some areas in Greater Vancouver have still reported year-to-date sales increases, including Port Coquitlam (263 sales in 2024 vs. 237 in 2023), New Westminster (546 vs. 544), and Whistler/Pemberton (186 vs. 180). Despite multiple interest rate cuts, buyers remain cautious, waiting for further declines, while sellers hesitate to list, fearing they might miss out on higher prices.
The situation has left both buyers and sellers frustrated, but those who decide to make a purchase now may be in a stronger position by spring. Currently, there’s a healthy selection of over 2,100 apartments for sale in Greater Vancouver and 2,080 in the Fraser Valley, giving buyers ample time to make well-considered decisions. However, with more buyers expected to enter the market in the spring, this could drive prices up, making now an opportune moment for those ready to act.
“Some of the most popular areas for condominium sales in Greater Vancouver in recent years are in East Vancouver. Its culturally diverse and artsy neighbourhoods, top-shelf restaurants and cafés, including Michelin Star Published on Main, as well as craft breweries and entertainment, have served to draw a younger demographic. False Creek, Mt. Pleasant, Kits Point, Fairview, Pt. Grey and Dunbar offer condo buyers a spectacular view of North Vancouver and the Burrard Inlet and easy access to the Skytrain, bike and walking paths, parks and recreational facilities. A one-bedroom apartment in an established building in Mt. Pleasant can be purchased for approximately $650,000, while newer product can be picked up for as low as $490,000 to a high of $928,000. Prices in nearby Kits trend higher with a one-bedroom hovering at $715,000 on average” (RE/MAX Canada, 2024).
The majority of apartment sales in both Greater Vancouver and the Fraser Valley are happening below the $800,000 mark for one-bedroom units. Two-bedroom apartments priced under $1 million are also attracting strong interest. The Fraser Valley generally offers a wider selection of options under $800,000, making it particularly appealing to first-time buyers.
As demand rises alongside the Bank of Canada's interest rate cuts, absorption levels are expected to increase. Spring 2025 is anticipated to see strong demand coupled with declining supply, leading to modest increases in average prices. Favourable economic fundamentals heading into the new year are likely to bolster home-buying activity, with lower interest rates and extended amortization periods enticing first-time buyers back into the market.
RE/MAX Canada (2024). Return of First-Time Buyers Expected in Vancouver Condo Market This Spring. Retrieved from https://blog.remax.ca/return-of-first-time-buyers-expected-in-vancouver-condo-market-this-spring/