Real Estate - February 2025 Report

Date: March 6, 2025 Source: Excerpts from "Greater Vancouver & Fraser Valley Real Estate: February 2025 Report" (Dexter's Report)

Executive Summary:

The Greater Vancouver and Fraser Valley real estate markets in February 2025 were characterized by significant uncertainty driven by impending tariffs, ongoing political discussions surrounding a federal election, and anticipation of the Bank of Canada's next interest rate decision. While sales in Greater Vancouver saw an increase from January, they lagged behind the previous year, and new listings declined month-over-month – an atypical trend. The Fraser Valley experienced a more significant year-over-year sales decline. Active listings continued their accumulation, albeit at a slower pace. The report highlights a market with underlying demand but one where both buyers and sellers exhibited caution in February due to the prevailing economic and political ambiguities.

Key Themes and Important Ideas/Facts:

1. Market Uncertainty Driven by Tariffs and Political Climate:

• Tariff Implementation: The looming implementation of tariffs on March 3rd created a "hush that came across from buyers," and some sellers also paused activity in February. The report explicitly states, "Tariff or not to tariff has been the question to start 2025 and continued through the month of February before culminating with a thud of tariffs on March 3."

• Federal Election Impact: The upcoming federal election and associated policy discussions are influencing market sentiment. "And the election promises are likely to impact what decisions people make with real estate. There is already talk of GST exemptions on new homes either up to $1M or $1.5M depending on which candidate wins, capital gains discussions and likely a push for supply from all sides."

• Interest Rate Uncertainty: The Bank of Canada's upcoming interest rate decision on March 12th added to the uncertainty, with "expectations somewhat mixed on whether another rate cut will happen." The report suggests the newly implemented tariffs might necessitate a "jumbo cut of at least 50 points" given low inflation and sputtering GDP.

2. Mixed Sales Activity and Declining New Listings:

• Greater Vancouver Sales: While February sales (1,827 units) were up 18% from January (1,552 units), they were down 11% year-over-year compared to February 2024 (2,070 units). This marks the first year-over-year decline since September 2024.

• Fraser Valley Sales: The Fraser Valley experienced a more significant decline, with February sales down 27% compared to February 2024.

• Declining New Listings: A notable trend was the drop in new listings in Greater Vancouver from January to February (down 9% to 5,163), which is "not a common occurrence in the real estate market." This suggests sellers were also hesitant to enter the market amidst the uncertainty.

• Below Average Sales: Greater Vancouver sales in February were "39% below the 10-year average," highlighting a sustained period of lower transaction volumes.

3. Accumulating Active Listings and Shifting Market Dynamics:

• Continued Listing Growth: Active listings in Greater Vancouver continued to accumulate, reaching 12,744 at the end of February, a 32% increase year-over-year and an 11% increase from January.

• Slower Accumulation Rate: The report notes that active listings are accumulating "at a slower rate," likely due to the decrease in new listings.

• Rising Sales-to-Listings Ratio: The sales-to-listings ratio in Greater Vancouver rose to 35% in February (from 27% in January), but remained below the ratios of February 2024 (45%) and February 2023 (51%), indicating "more favourable conditions for buyers as well."

• Months of Supply: The months of supply in Greater Vancouver remained steady at 7 months, indicating balanced market conditions overall. However, detached homes saw a decrease to 9 months (from 11), while townhomes (5 months) and condos (6 months) remained relatively stable. Townhomes continue to be the "least available and most competitive."

4. Regional Nuances within Greater Vancouver:

• Seller's Markets: North Vancouver and Port Coquitlam remained in a seller's market for total residential listings with only 4 months of supply. The townhouse segment showed even tighter conditions in areas like Port Moody, Port Coquitlam, Pitt Meadows, and Maple Ridge with only 2 months of supply. Squamish also saw a significant decrease in townhouse supply to 2 months.

• Buyer's Markets: Vancouver Westside (9 months) and West Vancouver (15 months) continued to exhibit buyer's market conditions. Richmond and Burnaby South also showed buyer's market conditions with 8 months of supply.

• Price Index Fluctuations: Month-over-month price index changes varied across regions, with some areas seeing increases (e.g., North Vancouver +1.4%) and others experiencing decreases (e.g., West Vancouver -2.0%, Pitt Meadows -2.6%, Maple Ridge -1.8%). Over the last six months, most areas showed a decline in the house price index.

5. Long-Term Perspective on Transaction Volume:

• The report emphasizes the low transaction volume compared to historical figures, stating, "Only fives times since the year 2000 have we seen less than 2,000 sales in Greater Vancouver for the month of February. Considering there were 4,051 sales in February 1989, this goes to show how few transactions are occurring given the increase in population and housing stocking over the last 35 years." This suggests a trend of homeowners holding onto their properties longer, contributing to supply constraints.

6. Supply-Side Developments:

• A project in North Vancouver's Lynn Canyon shifted to all rental, reducing the number of strata units available for purchase by 205.

• Port Moody approved new towers in its downtown core, adding over 1,000 units near the Moody Centre Sky Train station, indicating efforts to increase housing supply in certain areas.

7. Fraser Valley Specifics:

• While sales were up 10% from January, they were significantly down year-over-year (27%).

• New listings were down 8% from January but up 12% from February 2024.

• The average price was down 1% month-over-month but up 0.4% year-over-year.

• Active listings saw an 8% increase from January and a substantial 39% increase from February 2024.

• The months of supply remained at 8 months, indicating buyer's market conditions in the Fraser Valley.

Quotes Highlighting Key Points:

• On tariff impact: "And while the hush that came across from buyers wasn’t all too unexpected, some sellers as well joined in the pause of activity in February."

• On the unusual listing trend: "While sales in February were above the totals in January, new listing totals declined in February from January, not a common occurrence in the real estate market."

• On the impact of uncertainty: "It appears that the uncertainty around tariffs and interest rates affected the real estate market in February. This uncertainty may play out in the coming months, not to mention Canada’s own federal election coming this year."

• On the potential for a large rate cut: "With tariffs now in place, the Bank of Canada may need to do another jumbo cut of at least 50 points."

• On the underlying market desire to move: "The real estate market has undertones of a market wanting to move – literally."

• On the historical context of low sales: "Considering there were 4,051 sales in February 1989, this goes to show how few transactions are occurring given the increase in population and housing stocking over the last 35 years. People are holding on to the homes they buy, which exacerbates the lack of supply of available homes."

Conclusion:

The February 2025 real estate report for Greater Vancouver and the Fraser Valley paints a picture of a market navigating significant headwinds of economic and political uncertainty. The anticipation of tariffs and the upcoming federal election, coupled with fluctuating interest rate expectations, contributed to a cautious approach from both buyers and sellers. While Greater Vancouver saw a month-over-month increase in sales, the year-over-year decline and the unusual drop in new listings signal a period of adjustment. The Fraser Valley experienced a more pronounced slowdown. Despite the current hesitancy, the report suggests an underlying demand in the market. The coming months, with the implementation of tariffs, the Bank of Canada's interest rate decisions, and the unfolding federal election, will be crucial in shaping the direction of the real estate market in the region.

Welcome to 2025! January kicked off the year with strong momentum, reflecting a continuation of the positive trends seen in the last quarter of 2024. Sales were up, new listings surged, and optimism is returning to the market. However, the start of 2025 hasn't been without its challenges, with discussions of trade wars and political uncertainty adding new complexities. Despite this, lower interest rates and strong market fundamentals indicate a potentially active year ahead.

Key Highlights:

• Sales Growth: January sales were up 9% year-over-year.

• New Listings Surge: January saw the highest number of new listings for the month since 2012.

• Bank of Canada Eases Conditions: Lower interest rates are making homeownership more attractive.

• Trade War Uncertainty: British Columbia is expected to be the least affected by U.S. tariffs compared to other provinces.

Market Activity and Trends

January saw 1,552 properties sold in Greater Vancouver, a decrease from December (1,765 sales) but 9% higher than January 2024 and 51% higher than January 2023. Open houses and showings saw increased activity, with multiple offers occurring in some cases. The pent-up demand, held back by high interest rates in previous years, is now materializing as buyers re-enter the market.

While sales were 29% below the 10-year average, historical data suggests this level of activity is typical for January. With more interest rate reductions expected and an active spring market ahead, we can anticipate increasing momentum in the coming months.

Inventory & New Listings

The number of new listings in January was particularly notable, reaching 5,644 new listings—the highest for January in over a decade. This represents:

• 46% more new listings year-over-year.

• 67% more new listings compared to January 2023.

• 30% above the 10-year average for January.

Many sellers who held off listing their properties in late 2024 have now entered the market, some with higher listing prices in anticipation of better conditions. The total number of active listings reached 11,494, a 33% increase from January 2024, giving buyers more options.

Months of Supply & Market Conditions

Months of supply increased to 7 months in January, up from 6 months in December, reflecting the surge in new listings. This keeps the market balanced overall but with variations by property type:

• Detached homes: 11 months supply (Buyer's Market)

• Townhomes: 5 months supply (Balanced Market)

• Condos: 6 months supply (Balanced Market)

North Vancouver and Port Coquitlam remain seller’s markets, with only 4 months of supply overall. Townhomes, in particular, remain highly competitive in these areas.

Property Type Performance

• Townhome sales increased 12% year-over-year.

• Condo sales rose 13% year-over-year.

• Detached home sales remained flat, suggesting buyers are targeting lower price points.

• Inventory increases: Townhomes up 39%, condos up 37%, detached homes up 28% year-over-year.

Outlook for 2025

With interest rates expected to decline further, we anticipate a strong spring market as both buyers and sellers become more active. The next Bank of Canada rate decision on March 12th will be key in determining how quickly market activity accelerates. While global trade discussions and political uncertainties remain a factor, demand for housing in Greater Vancouver remains strong.

Final Thoughts

The 2025 market has kicked off with a mix of optimism, challenges, and renewed activity. While distractions persist, the fundamentals are aligning for increased real estate transactions. If you're considering buying or selling, now is the time to stay informed and be prepared to act as market conditions shift.

Need help navigating the market? Reach out for a personalized consultation to explore your real estate opportunities in 2025!

The December 2024 real estate market brought a strong finish to the year, with sales up 31% compared to December 2023. This momentum closed a year that saw renewed buyer activity driven by declining interest rates and optimism about what lies ahead. But as we head into 2025, the market continues to face challenges, from new tax policies to constrained supply in key segments like townhomes. Here’s a look at the highlights from Dexter Realty’s December report and what they mean for the coming year.

Key Highlights

• Sales Surge: December sales in Greater Vancouver increased 31% year-over-year and 35% compared to December 2022, driven by declining interest rates and pent-up demand.

• Q4 Sales Up: Fourth-quarter sales were 30% higher than in 2023 and 36% higher than in 2022.

• Townhomes in Demand: Townhome sales rose 55% year-over-year, reflecting strong demand in this segment.

• Interest Rates Drop: The Bank of Canada’s 50-basis-point rate cut in December spurred buyer activity, with another 25-point cut anticipated in January.

Interest Rates and Policy Shifts

Interest rate cuts have provided much-needed relief for buyers, but new tax policies present hurdles for both buyers and sellers. The provincial flipping tax, effective January 1st, 2025, imposes a 20% tax on profits for properties sold within one year, declining to 0% in the second year. This builds on the federal tax introduced in 2023, which treats such profits as income. These measures could influence seller behavior, particularly in the presale and assignment markets.

Meanwhile, new mortgage rules effective December 2024 are creating opportunities for buyers, including extended 30-year amortizations for presales and an increased threshold for insured mortgages up to $1.5M.

Market Activity

December defied expectations as the slowest month of the year, with 1,765 properties sold. While this was a decline from November’s 2,181 sales, it far outpaced December 2023 and 2022. Sellers were also active, with 1,737 new listings—54% fewer than November but 35% more than the same time last year.

However, inventory tightened as December progressed, with active listings at 10,948 by month-end—a 23% increase year-over-year but far below earlier peaks in 2024.

Segment Breakdown

• Detached Homes: Sales rose 31% year-over-year, with 8 months of supply keeping this segment balanced.

• Townhomes: The hottest segment, with just 4 months of supply, firmly in seller’s market territory.

• Condos: Sales increased 23% year-over-year, with inventory up 30%, presenting opportunities for first-time buyers and investors.

Looking Ahead to 2025

The stage is set for an improved real estate market in 2025, with declining interest rates expected to sustain buyer activity. However, supply constraints—particularly in new developments—remain a challenge that could limit options for buyers and drive competition.

New listings are anticipated to pick up in January and February, but whether supply growth matches demand will be a key factor in determining price trends. With federal immigration targets softening and rental prices beginning to decline, the market faces a mix of opportunities and uncertainties.

Opportunities and Challenges

For buyers, the condo market offers increasing opportunities, especially in areas with higher inventory. Townhomes remain scarce, so buyers should act quickly when options become available. Sellers may find that strategic timing—considering both tax implications and evolving market dynamics—will be crucial to maximizing returns in 2025.

Conclusion

As we turn the page to a new year, the real estate market continues to evolve. Whether you’re a buyer, seller, or investor, understanding the dynamics at play is essential to making informed decisions. With interest rates likely to decline further and market activity expected to remain strong, 2025 promises to be another fascinating year for Vancouver real estate.

Ready to navigate the market in 2025? Let’s connect to discuss your goals and how you can make the most of the opportunities ahead.

As of January 1, 2025, British Columbia has implemented the BC Home Flipping Tax. This legislation aims to curb speculative real estate activities by taxing profits from properties sold within a short period after purchase.

Key Aspects of the BC Home Flipping Tax:

• Applicability: The tax targets profits from the sale of residential properties, including presale contracts, owned for less than 730 days (approximately two years). This measure is designed to discourage rapid property turnovers that can contribute to housing market volatility.
  
  

• Tax Rate: A maximum tax rate of 20% is applied to the profits earned from such sales. This rate is intended to serve as a deterrent against short-term speculative investments.
  
  

• Exemptions: Certain situations are exempt from this tax, acknowledging that not all short-term sales are speculative. Exemptions include life changes such as death, divorce, significant financial hardship, relocations due to employment, and health-related reasons or disabilities requiring a move.
  
  

• Federal Anti-Flipping Tax: It's important to note that this provincial tax is separate from the federal anti-flipping tax, which applies to residential properties sold anywhere in Canada within 365 days of acquisition. Both taxes aim to reduce speculative real estate activities but operate independently.
  

  Implications for Stakeholders:

• Investors: The introduction of this tax necessitates a shift from short-term flipping strategies to longer-term investment approaches, such as buy-and-hold or rental income generation.

• Homebuyers and Sellers: Prospective buyers and sellers should be aware of this tax to avoid unexpected financial liabilities. Understanding the exemptions and planning transactions accordingly is crucial.

For comprehensive information and guidance, refer to the official BC government resources:

• BC Home Flipping Tax Overview

• Exemptions from BC Home Flipping Tax

Bank of Canada Rate Cuts Anticipated: Following a recent 50-point rate cut, further reductions are expected at the December 11th policy meeting to combat a stagnant economy marked by low inflation, weak job growth, and slow GDP. Lower rates are poised to benefit Canadians more than short-term government initiatives like the GST Holiday.

Seasonal Sales Slowdown with Positive Year-Over-Year Growth:

November Sales: 2,181 properties sold, a 28% increase from November 2023 and 34% higher than November 2022.

• Sales dipped from October's peak but remain a significant improvement compared to prior years of elevated interest rates.

• Total sales for 2024 are projected to slightly exceed 2023 figures, with a stronger spring market anticipated for 2025.

  New Listings Decline Seasonally:

• November Listings: 3,784 new properties, down 31% from October but up 10% year-over-year.

• While new listings for 2024 are on track to surpass 2023 by a substantial margin, legislative measures like flipping taxes could restrict supply in 2025.

  Active Listings and Market Trends:

• Active listings dropped to 13,245 in November from October’s 14,477.

• Inventory is expected to shrink further, ending 2024 around 10,500 active listings.

• Months of supply remain steady at 6, with detached homes at 8, condos at 5, and townhomes nearing a seller's market at just over 4 months of supply.

Market Outlook: Despite recent hesitation due to economic and political uncertainties, lower interest rates and upcoming changes to mortgage rules should boost activity in 2025. Buyers may see increased competition for townhomes and condos, particularly as new housing starts decline.

The market reflects cautious optimism as we close out 2024, with pent-up demand likely to drive activity in the coming year.

Buying a home as a self-employed individual can present unique challenges, especially in a competitive market like Vancouver. However, with the right preparation and approach, it’s absolutely possible to secure the home of your dreams. Here are some essential tips for self-employed home buyers:

1. Organize Your Financial Documents
   Lenders require more detailed financial documentation from self-employed buyers. Be prepared to provide at least two years of personal and business tax returns, along with income statements, balance sheets, and any other relevant records. Ensuring these documents are accurate and up-to-date is crucial to prove a stable income.

2. Improve Your Credit Score
   Your credit score plays a vital role in the mortgage approval process. Take time to review your credit report and address any inaccuracies. Paying down outstanding debts and maintaining a low credit utilization ratio can help boost your score, making you a more attractive candidate for lenders.

3. Save for a Larger Down Payment
   Self-employed buyers may face stricter lending criteria. A larger down payment can demonstrate financial stability and reduce the perceived risk for lenders. Aim to save at least 20% of the property’s purchase price, as this can also help you avoid mortgage insurance premiums.

4. Consider a Pre-Approval
   Getting pre-approved for a mortgage can give you a clearer idea of your budget and show sellers that you’re a serious buyer. This step can be especially beneficial in Vancouver’s competitive real estate market, where homes often sell quickly.

5. Work with an Experienced Realtor and Mortgage Broker
   Navigating the home-buying process as a self-employed individual is easier with the right support. Choose a Realtor who understands the Vancouver market and a mortgage broker who has experience with self-employed clients. They can guide you through the process, recommend lenders who are more flexible with self-employed applicants, and help you present your financials in the best light.

6. Stabilize Your Income
   Lenders look for consistent income, so avoid major business changes or fluctuations in income leading up to your home purchase. Showing steady, predictable earnings can improve your chances of qualifying for a mortgage.

Buying a home while self-employed requires a bit more preparation, but with these tips and the right team, you can confidently navigate the market and achieve your homeownership goals.

As homeowners seek to maximize the comfort, functionality, and value of their properties, home renovation trends are evolving to reflect new priorities. Here’s a comprehensive look at some of the latest trends shaping the renovation landscape in 2024:

1. Sustainable and Eco-Friendly Upgrades
   The focus on sustainability continues to grow as more homeowners prioritize eco-conscious living. This year, there’s a surge in the use of energy-efficient appliances, solar panels, and eco-friendly building materials such as reclaimed wood and recycled metal. Water-saving fixtures, such as low-flow toilets and touchless faucets, are increasingly popular for reducing water usage. Enhanced insulation and double- or triple-pane windows are also being installed to improve energy efficiency, helping to lower utility bills and reduce carbon footprints. These green renovations not only support environmental efforts but also increase a home’s market appeal.

2. Multipurpose Spaces
   The rise of hybrid work arrangements has made multifunctional spaces more important than ever. Homeowners are creating spaces that can seamlessly transition between different uses, such as home offices that double as guest rooms or playrooms. Basements are being reimagined as versatile areas that can function as home gyms, family entertainment centers, or hobby workshops. Adaptable furniture—such as foldable desks, convertible sofas, and modular shelving—plays a crucial role in maximizing space and functionality, making it easier for homes to meet the changing needs of residents.

3. Spa-Like Bathrooms
   The bathroom is no longer just a functional space; it has become a sanctuary for relaxation and rejuvenation. In 2024, spa-like bathroom renovations are highly sought-after. Features like rainfall showers, freestanding bathtubs, heated floors, and ambient lighting create a luxurious experience. Smart technology is also making its way into bathrooms, with voice-activated controls for lighting, mirrors that offer built-in lighting and anti-fog settings, and digital water temperature controls. These additions not only enhance comfort but also add a modern touch that appeals to homebuyers looking for that extra bit of luxury.

4. Biophilic Design
   Biophilic design, which emphasizes a connection to nature, is a trend that shows no signs of slowing down. Homeowners are incorporating natural light, indoor plants, and organic materials like wood, stone, and clay to create a calming environment. Large windows and sliding glass doors that blur the line between indoor and outdoor spaces are highly popular, as are green walls that feature living plants. These elements help bring the outdoors in, promoting a sense of well-being and tranquility that is essential for today’s busy lifestyles.

5. Warm and Earthy Tones
   Interior color palettes are shifting from cool grays and stark whites to warmer, earthy tones. Colors like terracotta, olive green, soft browns, and rich ochre are making their way into living rooms, kitchens, and bedrooms. These hues create a cozy and inviting atmosphere that pairs beautifully with natural materials and biophilic elements. Accent walls painted in warm tones, combined with textures such as woven fabrics and wooden decor, enhance the sense of comfort and warmth within the home.

6. Smart Home Integration
   The integration of smart technology continues to be a driving force in home renovations. From smart thermostats and security systems to voice-controlled lighting and kitchen appliances, homeowners are embracing tech that makes life more convenient and efficient. Newer systems are designed to be more user-friendly and seamlessly integrated, allowing for centralized control through apps or voice assistants. Smart kitchens, featuring appliances like touchless faucets and Wi-Fi-enabled ovens that can be controlled remotely, are becoming more common. This trend caters to tech-savvy homeowners looking for both comfort and high-tech functionality.

7. Bold Statement Features
   Homeowners are making a statement with bold design choices that add character and uniqueness to their spaces. This trend includes the use of dramatic light fixtures, feature walls with textured wallpaper or reclaimed wood, and unique backsplashes in kitchens that serve as focal points. Artisanal touches, such as custom cabinetry, handmade tiles, and vintage furniture pieces, contribute to a home’s distinct personality and create spaces that feel both personal and stylish.

Staying informed about these trends can help homeowners make strategic renovation choices that not only enhance their daily living experience but also boost their property’s market value. Whether it's incorporating sustainable practices, creating multifunctional spaces, or integrating smart technology, these updates reflect a modern approach to home design that prioritizes both form and function.

Highlights from Greater Vancouver’s October 2024 Real Estate Market Report

• Sales transactions surged in October

• New listings for October hit the second-highest level since 1991

• Bank of Canada’s 50-point rate cut—with more cuts likely on the way

• Listing absorption rates spiked

October’s real estate activity picked up, with sales surging alongside a notable rate cut from the Bank of Canada. While some hoped for a bigger rate reduction to jumpstart the market, a 50-basis point cut provided a welcome nudge. As the dust settles from BC’s provincial election, questions remain about the government’s housing promises and whether policy will drive more meaningful change.

U.S. events like the Presidential Election and upcoming Federal Reserve rate decisions continue to create economic noise. With the U.S. economy outperforming Canada’s, their interest rate cuts might not match Canada’s. This dynamic has weakened the Canadian dollar, and further cuts here could add to that trend, particularly as another half-point reduction could be on the horizon in December or January.

Sales in Greater Vancouver reached 2,632 properties in October—marking a strong fall peak. This 32% year-over-year increase is a promising sign of buyer engagement, particularly since October sales showed the strongest month-over-month increase since early 2022. Buyers appear to be re-entering the market, possibly driven by the recent rate cut and upcoming changes to mortgage rules in December. The government’s plan to allow 30-year amortizations for presale buyers and increase the insured mortgage threshold to $1.5 million may fuel buyer interest into the new year. In a shifting market, the saying rings true: buy now or compete later.

In October, sales sat 5% below the 10-year average, a marked improvement compared to the previous months’ performance. This uptick wasn’t simply seasonal; it indicated a resurgence in activity. October’s sales boost, especially in the townhome segment, suggests demand is making a comeback.

New listings reached 5,577 in October—a 10% dip from September but 20% above the 10-year average. Despite higher listing levels, inventory didn’t exceed 15,000 units, a benchmark not seen since 2019. As listings begin to decline toward year-end, this could further drive demand.

Absorption rates also rose in October, reducing months of supply across all property types. Detached homes dropped to 7 months of supply, townhomes to 4 (entering seller’s market territory), and condos to 4.5. October’s increased sales in each category created more competition among buyers, particularly for townhomes and condos, which continue to have high demand. Inventory for these property types remains higher year-over-year, especially compared to detached homes.

In summary, October’s uptick in activity is a promising start to what could be a stronger end to the year. A few more rate cuts from the Bank of Canada could help sustain this momentum, though economic headwinds and policy changes may still influence the pace of recovery.

For stats specific to your sub-area, please contact me @ kit@kitbrown.ca

Key Insights from Dexter’s September 2024 Report

• Bank of Canada expected to cut rates by 0.5% in October

• Sales in Metro Vancouver decline for the fifth consecutive month

• Highest number of Vancouver condo listings since 2012

• Buyers should act now before competition increases as rates fall further

September 2024 was a month of promises and uncertainty. The Bank of Canada cut its interest rate for the third consecutive time, and the U.S. followed suit with its first rate cut, a bold half-point reduction. Economic indicators point to another 0.5% rate cut from the Bank of Canada in October. Meanwhile, British Columbia heads to the polls in late October, adding political promises into the mix, particularly around housing affordability.

Buyers, however, seemed hesitant in September, waiting to see how these economic shifts would unfold. Sellers, on the other hand, flooded the market, with listings surging to their highest level since 2019. This created a window of opportunity for buyers to take advantage of the increased inventory before the anticipated rate cuts spark renewed competition.

For homeowners with variable-rate mortgages or lines of credit, September’s quarter-point cut reduced borrowing costs. While some expected a half-point reduction, it leaves room for further cuts in the Bank of Canada’s final two meetings this year. With inflation lagging, more aggressive cuts could bring the rate to 3.5% or lower by early 2025. However, buyers hoping for large fixed-rate drops may be disappointed, as bond yields—already factoring in expected rate cuts—have caused fixed rates to decline by more than 1.5% from their highs. Variable-rate mortgages now present the most significant savings, offering an advantage to buyers who act before spring competition intensifies.

Sales Trends and Market Dynamics In Greater Vancouver, 1,852 properties were sold in September, continuing the decline from 2,418 in June, 2,333 in July, and 1,903 in August. This marks a 4% drop compared to September 2023. Despite high listing volumes, many buyers are waiting for further rate cuts and government housing measures. The federal government's upcoming extension of mortgage amortizations and increased thresholds for insured mortgages offer some relief—but not until December, pushing even more buyers toward the spring market.

Sales were 26% below the 10-year average, with inventory levels offering buyers more choices than they've had since 2019. September brought 6,228 new listings to the market, a significant 48% increase from August and the highest number of new listings since May. Sellers were eager to enter the fall market, but buyer reluctance meant more homes sat unsold.

Condo and Detached Markets Greater Vancouver ended September with 14,932 active listings, up from 13,812 in August. Condos, in particular, saw the biggest jump in listings, with 39% more inventory year-over-year. Vancouver’s westside condos have the most active listings since 2012, sitting with 10 months of supply—partly driven by changes to rental and short-term rental regulations. On the east side, where prices are $200,000 lower on average, sales increased, leaving just five months of supply.

In the detached market, months of supply rose to 11, pushing some areas into a strong buyer’s market. As political debates and rate cuts dominate October, affordability remains the key issue for many. Buyers who act now can take advantage of the current inventory before the spring rush, while others will have to navigate a market primed for more competition as rates drop further.

September offered buyers increased choice, but the clock is ticking before the next rate cut triggers more activity. The market may be quieter now, but savvy buyers should move before the spring rush hits.

For more detail on your area contact me via email-kit@kitbrown.ca or by cell 778.828.9891

• Detached home sales in August down 18% to July

• Active listing counts declined except for Richmond, Coquitlam and Port Moody

• Lowest number of monthly sales since January

• Buyers ready for more interest rate cuts

August 2024 was a month of taking a break! Sales and listings slowed as many enjoyed the summer weather before the busy fall market. After five months of rising listings, August saw a sharp decline, reducing available homes.

The Bank of Canada reduced its key interest rate for the third straight time, lowering costs for variable-rate mortgage holders. While a half-point cut was expected, there’s still room for more reductions, with rates likely to drop further by year-end. Meanwhile, the U.S. has hinted at a September rate cut.

Fixed-rate mortgages, linked to bond yields, may not see an immediate drop, but further rate cuts could bring relief. With falling rates, buyer interest is expected to pick up, and 2025 will see many five-year mortgages up for renewal.

August sales hit 1,903, down from 2,333 in July and 2,831 in April. This marks the fourth month of declining sales. Buyers seem to be waiting for further rate relief, and while sales are down 26% from the 10-year average, there’s a sense that demand is building.

The number of new listings also dropped for the fourth consecutive month, with 4,199 new listings in August, down from 7,229 in April. Inventory is now closer to a buyer’s market, and many areas have shifted from seller’s markets.

Active listings have dropped slightly, signalling that the peak for 2024 may have passed. With 13,812 listings at month’s end, buyer choice will likely shrink as we move through the rest of the year.

The political landscape in B.C. has also shifted, with the B.C. United leader stepping down. Housing will be a major focus in the upcoming election, but whether either party can effectively address supply issues remains to be seen. The NDP's efforts over the past eight years have had minimal impact, and the current regulatory environment continues to challenge future housing supply.

For the full report of any or all specific neighbourhoods, please contact me @ kit@kitbrown.ca or 778.828.9891.

Whether you own a condo or a large single family home, selling your home in the fall can be an advantage, as buyers are typically more serious and there’s less competition than in the spring or summer. Here’s how to make your home stand out:

1. Maximize Curb Appeal: As leaves fall, ensure your lawn is neat and tidy. Rake leaves, trim bushes, and plant seasonal flowers like mums to give your home a warm and welcoming look.

2. Let the Light In: Fall days are shorter, so make the most of natural light. Clean windows, open curtains, and add soft lighting to brighten your home. This can make rooms feel more inviting.

3. Cozy Up Your Space: Use neutral tones and soft textures like blankets and pillows to create a cozy atmosphere. A warm, inviting interior can help buyers imagine themselves living in the space.

4. Seasonal Maintenance: Ensure gutters are clean, HVAC systems are in working order, and any weather-related repairs are complete. A well-maintained home signals to buyers that it has been cared for.

5. Highlight Fall Features: If your home has a fireplace, emphasize it. Stage outdoor spaces with fall decorations or fire pits to showcase their year-round usability.

By focusing on these areas, you can attract more buyers and potentially sell your home faster, even during the fall season!

As a Realtor, coffee is my daily fuel. 

Coffee Station Essentials We often just find a spot to plug in our coffee makers, making the coffee station an afterthought. But if you’re building your dream home or finally tackling that kitchen reno, taking time to plan this space will make your mornings so much better.

Here are my 5 secrets to creating a fantastic coffee bar:

1. Go Built-In

   • Incorporating your coffee bar into your cabinetry keeps your kitchen looking sleek and organized. It also gives you the storage you need for all your coffee and tea essentials. Opt for a built-in design to hide appliances, cords, and outlets, freeing up counter space. Add vintage-style drawer pulls for a functional and beautiful finish.

2. Maximize Storage

   • Storage is always at a premium, so planning it out before you build is crucial. Don’t overlook cabinet doors—they’re great for adding shallow shelves to store canisters, spices, and more. Another tip: wrap-around shelving inside the bar doubles your storage space without losing visibility.

3. Upgrade Your Equipment

   • If you’re serious about your coffee, consider investing in an espresso machine. It’s a game-changer. We went with the Cliff & Pebble Rocket Appartamento, and it’s a compact, sophisticated machine that makes amazing coffee, lattes, and more. Other great options include the Jura Ena 8, Cafe Affetto, and The Miele.

4. Add Rolling Drawers

   • Convenience is key in a coffee bar, and rolling drawers make life easier. I love using crate-style drawers for storing taller bottles or less frequently used appliances. Plus, you can easily roll them out with your foot, keeping your hands free for your coffee.

5. Utilize Hooks

   • Install hooks to hang coffee mugs and wine glasses. This frees up your shelves for larger items and keeps everything within easy reach.