Analyzing Vancouver Sales Statistics for April 2024 : Will Rising Inventories Cause Prices to Drop?

“I’m Jamie Hooper with the Home Advantage team and Remax Select Properties, and today we’re here to talk about the April 2024 sales statistics. The big question is will rising inventories cause home prices to drop in Vancouver? But before we do that, I’d just like to remind you that if you get any value out of these videos or enjoy them at all, maybe just press the thumbs up, make a comment, or even subscribe to our YouTube channel.

Market Dynamics During the Pandemic

So, the story of the month of April was rising inventories, meaning there are more houses for sale in Vancouver. Inventories are at their highest level since August of 2020, right at the beginning of the pandemic. So, during the whole pandemic, we have had a shortage of houses for sale, and that’s what’s been fueling the market. Even though sales were lower than they’ve been, the lower parts of the market have been sellers’ markets for the last three to four years.

Detached House Sales Analysis

So, if we have a look at the statistics here for the detached house sales for the month of April, we’ll see what we’ll see here. We’ve got some variations, but let’s talk about what each of these numbers means, first of all.

Understanding Market Conditions

List-to-sell ratios, that’s the first one we talk about every month. But there are three types of markets: a sellers’ market, which is anything 20% and up, a balanced market, which is between 12 and 20%, and a buyer’s market, which is less than 12%. And what those numbers mean, the percentages are the percentages of the amount of homes sold compared to how many are for sale each month.

Regional Market Analysis

So, you can have a look, we’ve got some sellers’ markets in North Van, east side of Vancouver, and in Ladner, they’re all above 20%. In Toas Richmond Westside, they’re all balanced markets. And then when we see in West Van, that’s considered a buyer’s market. But what we don’t see on here, if you look at the next column, is where it’s a buyer’s market up until you see all of these markets have two types of markets, but there’s a drop-off point which we picked up where it changes from an extreme buyer market to an extreme sellers’ market.

Price Point Considerations

For instance, the west side of Vancouver is a sellers’ market up to 4.5 million. When you get above it, it just drops off and becomes an extreme buyer market. East side of Vancouver, same thing, up to 2.5 million. And as you read down that column, all of those places are extreme sellers’ markets until you hit that number and it changes.

Key Market Indicators

The next column is for how many properties sold either above or at asking price. And you can see that in North Van and Ladner, 50% of the properties are selling either at asking price or above, which indicates that you must have sellers’ market conditions. And most of that activity, when you see it happening, is below the price of 2.25 in Ladner, for instance, or the 30% that sold above asking happened below 4.5 million on the west side.

Median Days on Market and Percentage of Asking Price

The next indicator is median days on the market, the amount of days that took for homes to sell. You can see that the low point is Ladner with four and West Van with 23. And then the last column, percentage of asking price, what percentage of the seller’s asking price did they achieve in each area? The big winners are the east side and Ladner, and the lowest is West Van.

Condo and Townhouse Market Comparison

Flipping over to the next page, we’ve got the condo townhouse sales. I’m not going to go through each of these ones. You now know how to read them after I went through the detached ones because I don’t want to put a bunch of people to sleep here. But the condo townhouse market is more active because it’s just more affordable. So, it has remained stronger than the detached housing market over the last four years since the pandemic happened.

Outlook and Future Considerations

So, what’s the outlook for the rest of the year? We’ve got some things coming up. There’s another bank meeting in June. It sounds like they’re going to hold the rate steady. There are still inflation concerns and just the amount of product coming on the market. Is that going to continue? If that continues at that pace, at some point, that’s going to have to slow down the market and some prices are going to have to soften. So, we’ll keep our eyes on those two things over the summer months.

If you found this video helpful or informative, please consider giving it a thumbs up and subscribing to our channel for more updates on the Vancouver housing market. And if you have any questions or are ready to start your home buying or selling journey, feel free to reach out to us. We’re here to help you every step of the way

I’m Jamie Hooper with the Home Advantage team and Remax Select Properties, and we’ll be back to do another video soon.”