July 2024 Greater Vancouver Real Estate Market Insights

Welcome to the July 2024 episode of the Presale Pulse, a real estate show brought to you by hosts Suzana Goncalves and Brittany Reimer. Watch the video to understand the latest macroeconomics, presale, and resale trends over the last 30 days affecting the local real estate market across Metro Vancouver and the Fraser Valley.

Cautions Optimism Amid Economic Indicators

The anticipation of the upcoming Bank of Canada meeting was a focal point, with expectations of another rate cut following the previous month’s reduction. However, the slight uptick in inflation to 2.9% from 2.7% was a minor setback, though still within the target range of 1-3%. Analysts emphasized that the broader trend, reflected in the lower three-month average CPI compared to the twelve-month average, indicated a cooling economy. Despite this, job losses and other economic indicators warranted careful monitoring. Additionally, the interplay with US monetary policy, where the Federal Reserve held rates steady, was significant, as the divergence in rate strategies between the two countries could not be too pronounced. As summer progressed, market watchers remained vigilant, balancing short-term data fluctuations with long-term economic trends.

Presale Market Shows Caution Amidst Consistent Unit Releases and Subdued Absorption Rates

With 12 projects launching, offering a total of 1,810 units, June saw a decrease in new releases compared to previous months, yet remained consistent in unit volume compared to last year. Absorption rates remained subdued, with only 296 units sold, translating to a 16% absorption rate. Developers continue to navigate market uncertainty, some opting to delay launches until fall or beyond, while others seize the moment to gauge buyer interest through extended preview periods. Economic indicators, including a slight uptick in inflation to 2.9%, tempered expectations despite recent interest rate cuts, signalling a measured approach to market recovery as developers and buyers assess future conditions.

Adjustments in Resale Amid Increased Inventory and Balanced Dynamics in June

In June, the Greater Vancouver resale market displayed signs of adjustment amidst fluctuating demand and increased inventory levels. With 2,418 sales recorded for the month, representing a decline of 19.1% compared to the previous year, market activity reflected cautious buyer sentiment. Active listings surged to over 14,000, marking a notable increase from both the previous month and the same period last year. This influx of inventory contributed to a balanced market dynamic, where sellers faced challenges aligning their price expectations with buyer willingness. The benchmark price for all property types saw a slight decrease of 0.4% from the previous month, signalling a potential shift as the market adjusts to evolving economic conditions and buyer preferences.

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Greater Vancouver July 2024 Presale Pulse by MLA Canada