Resilience in Metro Vancouver Housing Market: A 2023 Recap 🏠📈💪

The Metro Vancouver housing market faced a challenging 2023, marked by the highest borrowing costs in over a decade. Despite this, the Real Estate Board of Greater Vancouver (REBGV) reveals a surprising story of resilience, concluding the year with balanced market conditions.

Overview of 2023: A Year of Strength Despite Challenges

In 2023, residential sales totaled 26,249, showing a 10.3% decrease from the previous year. However, this figure doesn't reflect the underlying strength seen throughout the year. Andrew Lis, REBGV’s director of economics, notes that the market defied expectations, with a five-plus percent increase in home prices across all segments. This signals Metro Vancouver's enduring appeal, proving that even elevated borrowing costs couldn't deter determined buyers.

Properties listed on the Multiple Listing Service® (MLS®) in 2023 decreased by 7.5% compared to 2022, highlighting a 20.2% drop from 2021. Currently, 8,802 homes are listed for sale, showing a 13% increase compared to December 2022. The MLS® Home Price Index composite benchmark price for all residential properties is $1,168,700, indicating a 5% increase over December 2022.

2023 in Retrospect: Too Few Homes, Record-Low Inventory 🏠📉

The story of 2023 revolves around a scarcity of homes relative to willing and qualified buyers. Sellers hesitated to list early in the year, resulting in fewer sales initially. However, this led to near record-low inventory levels in the spring, driving prices higher as buyers competed for limited options.

Andrew Lis reflects, "Looking back on the year, it’s hard not to wonder how we’d be closing out 2023 if mortgage rates had been a few per cent lower than they were." Insights into this question may unfold in 2024, as bond markets and forecasters project lower borrowing costs and modest rate cuts in the New Year. 🕵️‍♂️📅

December 2023: A Balanced Close to the Year 🎉

In December 2023, residential sales increased by 3.2% compared to the previous year, totaling 1,345. New property listings saw a 9.9% rise, reaching 1,327. The sales-to-active listings ratio for December 2023 is 16%, with ratios for detached homes, attached, and apartments at 11.1%, 18.7%, and 19.6%, respectively.

Sales of detached homes in December 2023 rose by 1.3%, reaching 376, with a benchmark price of $1,964,400. Apartment sales increased by 2.4%, totaling 719, with a benchmark price of $751,300. Attached home sales saw a 7.2% increase, totaling 238, with a benchmark price of $1,072,700.

The Metro Vancouver housing market's resilience and balanced conditions at the close of 2023 set an optimistic tone for the New Year. 🌟🏡📊


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