Vancouver Housing Market Report
- Vancouver housing market witnesses rising prices and declining sale volumes.
- The average home price in Greater Vancouver was $1,318,687, which rose 4.1% annually and 3.3% monthly.
- The benchmark price of homes in Metro Vancouver was $1,196,800, representing a 1.1% monthly increase and a 4.5% yearly increase in March 2024.
- Vancouver’s benchmark price exhibits a 29% increase over four years but is 5.2% lower than the all-time high of $1,262,600 in April 2022.
- Detached home average price increased by 1.8% year-over-year to $2.21M.
- Attached home average price increased by 6.9% year-over-year to $1.28M.
- Condo apartment average price increased by 4.6% year-over-year to $823k.
- April 19, 2024 Update: Today’s Lowest mortgage rate in Vancouver is 4.74% for 5-Year Fixed.
Greater Vancouver Housing Market Overview
Average and Benchmark Home Prices
The average home price in Greater Vancouver was $1,318,687 for March 2024. This price represents an annual increase of 4.1% and a monthly increase of 3.3%. In March 2024, the average sale price of detached houses, attached houses and apartments in Greater Vancouver was $2,207,689, $1,281,491 and $822,783, representing a 2.2%, 1.3% and -0.5% change relative to February 2024, respectively. These prices also represent 1.8%, 6.9%, and 4.6% annual increases.
The benchmark price of homes in Metro Vancouver was $1,196,800 in March 2024, a 1.1% monthly increase and a 4.5% increase year-over-year. Benchmark prices of detached houses in Vancouver rose 7.4% over the past year and 1.8% over the past month to reach $2,007,900 for March 2024. Vancouver’s attached home benchmark price is $1,112,800, up 5% year-over-year and 1.7% month-over-month in March 2024. Apartment benchmark prices increased 5.7% year-over-year and rose 0.9% month-over-month to $777,500.
Vancouver Home Sales
In March 2024, 2,415 Vancouver houses were sold. These sales include 694 detached homes, 1,207 apartments and 495 attached homes. Looking at Metro Vancouver's housing market, there were 10,552 active listings at the end of March 2024, up 23% compared to last year and 9.5% relative to last month. The number of active listings is above the long-term average for this time of the year.
The 5,002 new listings this month represent a 16% increase year-over-year and 9.7% higher than last month. The number of new listings is 10% below the long-term average for this time of the year. The 2,415 home sales this month are 4.7% lower year-over-year. These numbers put Vancouver’s sales-to-active listings ratio at 23%, compared with 21% in February 2024. Also, the sales to new listings ratio (SNLR) was 48% for March 2024, which is higher than 45% in February 2024 but much lower than 101% for December 2023. 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. We should note that SNLR exhibits a strong seasonal effect. Specifically, in December, few people tend to list their homes; thus, SNLR often rises each December.
Vancouver Home Prices
Vancouver benchmark home prices have increased by 239% since January 2005. This translates into a cumulative annual growth rate (CAGR) of 6.6%.
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.
Toronto’s competition with Vancouver regarding home unaffordability is relatively recent, as Greater Toronto benchmark home prices have climbed by 46% over the past five years to reach $1,113,600 in February 2024. This five-year growth translates into an impressive CAGR of 7.9% (which does not include the potential rent received). This whopping 5-year growth is despite a 16% price decline from the peak of $1,322,000 in Toronto benchmark home prices in March 2022.
Long Term Trend
Over the past 19 years, the 239% growth in Vancouver home prices has been much faster than either the inflation rate of 50% or wage growth. In other words, building houses (producing shelter) has been more difficult than making most other economic 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 918/km2, while the population density in the city-state of Singapore is 7,800/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 which will force municipalities to allow (at least) a secondary suit on each lot. In municipalities with more than 5000 people, a minimum of 3 or 4 (depending on the lot size) units per lot will be permitted. Toronto has also made a move to allow the building of plexes on most parcels of residential land. 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. Such moves in time should allow Vancouver home prices to decline in real (inflation-adjusted) terms. This decision should also cause single-family detached home prices to increase in comparison to attached and apartment units, as from now on, most single-family homes have the potential to host few homes on their land.
Macroeconomics Analysis
Over the past three years, interest rate expectations have been the main driver of the Canadian housing market. During 2022 and 2023, the Bank of Canada raised interest rates to subdue CPI inflation. Between March 2022 and March 2023, higher Canadian interest rates pushed up mortgage rates and reduced borrowing power, reducing bids from investors and speculators. As a result, average Vancouver home prices dropped by 13% from their February 2022 peak to their January 2023 trough.
In January 2023, the Bank of Canada (BoC) announced a pause in raising the Bank of Canada’s policy rate, and the market started to look forward to lower mortgage rates. A combination of expectations for lower interest rates with the seasonal effect of the spring resulted in a resurgent housing market over the first half of 2023. However, stubborn inflationary pressures forced the BoC to raise rates again during the summer of 2023, and home prices were in declining mode over the second half of 2023.
The forecast for Canada mortgage rates is that mortgage rates will decline from their current levels. Also, 2024 mortgage rates forecast and the 2025 mortgage rate forecast show a prolonged decline in rates. We think this decline would not be inflating already high home prices in southern Ontario or Southern BC as higher unemployment rates most likely accompany them.
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 March 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.