Vancouver Housing Market Report
- The average home price in Greater Vancouver was $1,276,716, which declined by 0.5% annually and rose by 2.1% monthly.
- In November 2024, the benchmark price of homes in Metro Vancouver was $1,172,100, representing a 0.9% yearly decrease.
- Vancouver’s benchmark price has increased 68% over the past decade but is 7% lower than its all-time high of $1,259,900 in April 2022.
- Detached home average price increased by 1.7% year-over-year to $2.16M.
- Attached home average price increased by 1.8% year-over-year to $1.24M.
- Condo apartment average price decreased by 1.1% year-over-year to $785k.
- December 22, 2024 Update: Today’s lowest mortgage rate in Vancouver is 4.09% for 5-Year Fixed.
Greater Vancouver Housing Market Overview
Vancouver Housing Market: Price Movements for November 2024
Benchmark Home Price | $1,172,100 | -0.0% 1-Month Change | -0.9% 1-Year Change |
Average Home Price | $1,276,716 | +2.1% 1-Month Change | -0.5% 1-Year Change |
Average and Benchmark Home Prices
The average home price in Greater Vancouver was $1,276,716 in November 2024. This price represents an annual decrease of 0.5%. In November 2024, the average sale price of detached houses increased by 4.7% from last month to reach $2,159,691, representing an annual increase of 1.7%.
The average price of an attached house and apartment in Greater Vancouver was $1,240,949 and $785,179, representing a 3.6% and 3.3% decrease relative to October 2024, respectively. These prices also represent a 1.8% and -1.1% annual change, respectively.
The benchmark price of homes in Metro Vancouver was $1,172,100 in November 2024, a 0.9% decrease year-over-year. Benchmark prices of detached houses in Vancouver rose 1% over the past year but decreased 0.3% over the past month to reach $1,997,400 for November 2024. Vancouver’s attached home benchmark price is $1,117,600, up 1.8% year-over-year and 0.8% month-over-month in November 2024. Apartment benchmark prices decreased 1.2% year-over-year and 0.6% month-over-month to $752,800.
Vancouver Home Sales
In November 2024, 2,181 Vancouver houses were sold. These sales include 626 detached homes, 1,089 apartments and 451 attached homes. Looking at Metro Vancouver's housing market, there were 13,245 active listings at the end of November 2024, up 21% compared to last year’s November. The number of active listings is much higher than the long-term average for this time of the year.
The 3,725 new listings this month represent a 10.6% increase year-over-year but 32% lower than last month. The 2,181 home sales this month are 28% higher year-over-year. These numbers put Vancouver’s sales-to-active listings ratio at 17.1%, compared with 19% for last month. Also, the sales-to-new listings ratio (SNLR) was 59% for November 2024, higher than 48% in October, but it kept Vancouver in a balanced market territory. An SNLR above 60% is interpreted as a seller’s market, while an SNLR below 40% is a buyer’s market. In comparison, an SNLR between 40% and 60% is interpreted as a balanced market.
Vancouver Home Prices
Vancouver benchmark home prices have increased by 233% since January 2005. This translates into a cumulative annual growth rate (CAGR) of 6.2%.
Comparison Between Vancouver and Toronto Housing Markets
Metro Vancouver and the Greater Toronto Area are the most expensive Canadian housing markets. Vancouver has been a pricy housing market for many years, and its current benchmark price has increased by 31% over the past five years, compared with the CPI inflation of 18% over the past five years. An increase in the population supported this rise in home prices.
Greater Vancouver Population Chart
Toronto’s competition with Vancouver regarding home unaffordability is relatively recent, as Greater Toronto benchmark home prices have climbed by 37% over the past five years to reach $1,060,300 in October 2024. This five-year growth translates into an impressive CAGR of 6.6% (which does not include the potential rent received or the expenses paid). This 5-year growth is despite a 19% price decline from the peak of $1,313,800 in Toronto benchmark home prices in March 2022.
Long Term Trend
Over the past 20 years, the 230% growth in Vancouver home prices has been much faster than either the 53% inflation rate or wage growth. In other words, building houses (producing shelter) has been more difficult than making most other goods and services. Many claim that land is a limited resource, and thus, house building faces a natural limitation. This is incorrect, as there is no natural limitation on increasing the population density.
For example, the population density in the Vancouver metropolitan area is 1,040/km2, while the population density in the city-state of Singapore is 8,500/km2. So, land is not the limiting factor for sheltering people. What is limiting house building in Vancouver and Toronto area are municipal regulations imposed on housing production. This problem is quantified in the “Municipal Land Use and Regulation Survey.”
In a very belated but necessary decision, the Vancouver City Council allowed building multiplexes of up to 6 strata units or up to 8 rental units on larger lots formerly limited to single-family houses. More importantly, the BC government has passed legislation forcing municipalities to allow (at least) a secondary suit on each lot. In municipalities with more than 5,000 people, a minimum of 3 or 4 (depending on the lot size) units per lot will be permitted. Toronto has also moved to allow the building of plexes on most residential land parcels. Given the racist root of zoning regulation, these changes are coming too late.
Such rezoning steps can increase the supply of dwellings and prevent further inflation of the Vancouver housing market bubble. Over time, such moves should allow Vancouver home prices to decline in real (inflation-adjusted) terms.
Macroeconomics Analysis
Over the past three years, monetary policy has been a primary driver of Canadian housing markets. Housing markets were booming during the pandemic as the monetary base expanded faster than ever. In 2022 and 2023, the Bank of Canada raised interest rates to subdue CPI inflation. The Bank of Canada's restrictive monetary policy put a break on the housing market activity by increasing interest rates in Canada.
On the one hand, higher interest rates reduce the present value of the rent, which can be earned from a home, thus reducing the house's value. On the other hand, higher interest rates mean higher Canadian mortgage rates, which result in higher mortgage payments and reduce home affordability. Therefore, the average Canadian home price peaked in February 2022 and decreased 25% into the January 2023 trough.
In January 2023, BoC paused its rate hikes, and the market started looking forward to rate cuts. The seasonal effect of spring and expectations for decreasing mortgage rates ueled a 2023 resurgence in the housing market. Canada’s average house prices rose 19% from its January low by May 2023. In June and July 2023, BoC raised rates again. As a result, Canada's housing markets softened again, and prices declined from May 2023 until November 2023. Between November 2023 and April 2024, the market eagerly anticipated rate cuts by the BoC. Average Canadian home prices once again trended higher from November 2023 until January 2024. Now, in the second half of 2024, BoC is cutting rates and is expected to continue cutting over the next year. More recently, monetary policy has lost its prominent role in determining the direction of Canada’s housing market. The Sideway moving market seems to have enabled many market participants to think about the intrinsic value of housing free from FOMO (fear of missing out).
Over the past two decades, municipalities have been keeping the supply of houses down. Investors were borrowing as much as they could to purchase more houses. This has been happening even though legislatures in Ontario and British Columbia have mostly sacrificed landlord property rights to create security of tenure for tenants. This belief in perpetual home price appreciation gave mortgage rates a prominent role in determining the direction of the Canadian housing market. However, the fluctuations over the past two years might start to break the belief that house prices can only go up. Home buyers might become more disciplined about how much they are willing to borrow, which might reduce the importance of monetary policy in the housing market.
Though monetary policy affects all of Canada, it is essential to remember that housing markets are local phenomena. The Ontario housing market and the British Columbia Housing market mainly influence the average Canadian home price. These two markets became bubble territory when expansionary monetary policy offered almost free money to real estate investors and speculators after the global financial crises, especially during the pandemic.
BoC started cutting rates in June 2024, and the forecast for Canada mortgage rates is that they will decline from their current levels. Also, the 2024 mortgage rate forecast and the 2025 mortgage rate forecast show a prolonged decline in rates. This decline would not necessarily inflate already high home prices in southern Ontario or southern BC, as those price levels are unsustainable even at much lower interest rates.
Home Prices in Vancouver
Metro Vancouver Housing Market Statistics for All Property Types
Average Sold Price and Benchmark Price
Total Transactions
Property Type Distribution
Market Overview for Detached Homes in Metro Vancouver
Average Sold Price & Benchmark Price
Transactions
Market Overview for Attached Homes in Metro Vancouver
Average Sold Price & Benchmark Price
Transactions
Market Overview for Condo Apartments in Metro Vancouver
Average Sold Price & Benchmark Price
Transactions
Greater Vancouver Area Breakdown by Region for November 2024
Glossary and Definitions
MLS® HPI: The MLS® Home Price Index (HPI) is an index by the Canadian Real Estate Association (CREA) that tracks the prices of homes in a neighborhood. It allows Canadians to quickly compare home prices across Canada and between periods of time without having to account for specific features of a property. Unlike market prices, which can fluctuate from month to month based on seasonal dynamics, the HPI provides a stable view tracks trends across a longer period of time. The HPI is reviewed every year in May to adjust for changes in the real estate marketplace.
MLS® HPI Benchmark Price: The MLS® Home Price Index (HPI) Benchmark Price is the HPI translated into a real-world price number.
Strata Insurance: Strata insurance is insurance used by a strata like a condominium to covers damages to common areas and assets and liability to the strata. It can also include fixtures built or installed as part of the original construction of each unit, even though these may not be common structures. The insurance can cover:
- Buildings and structures associated with the strata including common areas such as the roof, parking garages, driveways, gyms, pools, etc.
- Liability for any property damage or bodily injury suffered on strata property
- Any fixtures that are part of the "standard unit" or original construction of each unit
Strata insurance does not usually include personal items and appliances that are part of a condo unit. It also does not cover the damages made by individual unit owners, such as in the case of water damage caused by a unit owner. These are usually covered by personal condo insurance.
Property types
Detached home: A detached home is your standard single-family home. It is a residential building that stands alone and is separately titled or legally a single unit.
Semi-detached home: A semi-detached home is similar to a detached home, except it shares a wall with another home. This pair of homes must make up an independent building and each should be separately titled or legally two separate units. There can only be two homes in a semi-detached building.
Townhouses: A townhouse is the middle between a detached/semi-detached home and a condo apartment. Like detached and semi-detached homes, they are often single-family units that have their own land and may be attached to other units. However, like condo apartments, they typically have to pay co-ownership fees for maintenance and may share some common features with their neighbors.
Condo apartment: This category includes all apartments and condominiums. These are complexes of residential units with common areas such as hallways, parking lots, stairwells, etc. They can be low-rise, mid-rise, or high-rise buildings. Unlike townhouses, there are no parts of the lot (the land of the building) where access is reserved for only one owner or occupant. There can be privately owned units and spaces inside the building.
Plexes are multi-story buildings with two to four individual units, usually one on each floor. They are a mainstay in Montreal and other cities in Quebec. Each unit is usually individually accessible via an external entrance with higher floors connected by staircases.
Property Classes
Freeholds: A freehold is any property where the owner owns both the house and the land it is built on. Common freehold property types include: detached, semi-detached, some townhouses, and farmland.
Condominiums: A condominium or condo is any property where the owner owns the home (or unit) but shares ownership of the land and other improvements with a condominium corporation. Common condominium property types include condo apartments and some townhouses.
Leasehold: Leasehold describes the situation where different entities own the land and the structure built on the land. Owner of the buildings has leased the land and pay rent to their landlord while owning the building on the land.
Housing Markets Across Canada
Data sourced from the Real Estate Board of Greater Vancouver (REBGV) and the Canadian Real Estate Association (CREA). Any analysis or commentary is the opinion of the analysts at WOWA.ca and should not be construed as investment advice. Please consult a licensed real estate professional before making a real estate investment decision. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
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- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.
- The trademarks MLS®, Multiple Listing Service®, and associated logos are owned by CREA and identify services provided by its members.