As the holiday season approaches, the market is showing some interesting dynamics. Traditionally, December sees a slower pace as people focus on holiday plans, family gatherings, and festive events. However, this year has been anything but typical!
October’s sales exceeded the 10-year average, and November kept up the momentum. Now, December is starting briskly as many buyers aim to beat the usual January rush. The possibility of a Bank of Canada rate reduction remains uncertain, with inflation trends adding some complexity—current odds seem about 50/50.
For buyers, this is a fantastic time to keep searching. Fewer buyers mean less competition, and sellers active during December often signal higher motivation. On the flip side, for our sellers, the buyers in the market now are typically serious and may need to act quickly, creating opportunities for both sides.
Whether you’re buying, selling, or simply watching the trends, we’re here to guide you every step of the way. Wishing you a warm and wonderful holiday season!
The Canadian government and the Office of the Superintendent of Financial Institutions (OSFI) have introduced several updates to mortgage regulations for 2024, including:
These measures aim to make homeownership more accessible and adapt to the realities of the current housing market.
- Increased Price Cap for Insured Mortgages
- Extended Amortization Period to 30 Years
- Removal of Second Stress Test for Lender Switching
- New Approach to Regulate Mortgage Risk
These measures aim to make homeownership more accessible and adapt to the realities of the current housing market.
After checking out the statistics below, we have added a new section to our newsletter with some interesting and funny links and videos called "Fun Finds". Be sure to check them out.
GVR (Formerly REBGV): BUYER DEMAND SURGES IN OCTOBER
After months of tracking approximately 20% the ten-year seasonal average, Metro Vancouver home sales surged more than 30% year-over-year in October.
“Typically, reductions to mortgage rates boost demand, and the strong October sales numbers suggest buyers may finally be responding to lower borrowing costs after waiting on the sidelines for months,” Andrew Lis, GVR’s director of economics and data analytics said. “To some market watchers, this rebound may come as a surprise, but with four consecutive rate cuts from the Bank of Canada – and more likely to come on the horizon – it was only a matter of time until signs of renewed strength in demand showed up.”
“While the strength in October's numbers is encouraging, one data point does not make a trend," Lis said. "Recent data shows that market conditions have been decidedly balanced, with prices easing over the past few months. With the recent uptick in sales, however, the attached and apartment segments are now tilting toward a seller’s market with the detached segment not far behind, suggesting the recent period of price moderation may be nearing an end."
“Typically, reductions to mortgage rates boost demand, and the strong October sales numbers suggest buyers may finally be responding to lower borrowing costs after waiting on the sidelines for months,” Andrew Lis, GVR’s director of economics and data analytics said. “To some market watchers, this rebound may come as a surprise, but with four consecutive rate cuts from the Bank of Canada – and more likely to come on the horizon – it was only a matter of time until signs of renewed strength in demand showed up.”
“While the strength in October's numbers is encouraging, one data point does not make a trend," Lis said. "Recent data shows that market conditions have been decidedly balanced, with prices easing over the past few months. With the recent uptick in sales, however, the attached and apartment segments are now tilting toward a seller’s market with the detached segment not far behind, suggesting the recent period of price moderation may be nearing an end."
LINK to the November 2024 GVR statistics.
FVREB: RISING HOME SALES A SIGN OF MARKET SHIFT IN THE FRASER VALLEY?
Home sales in the Fraser Valley increased for the first time in five months following a sizable interest rate cut by the Bank of Canada in October.
“After waiting it out on the sidelines for a number of months, buyers seem to be finally responding to the series of successive rate cuts by the Bank of Canada,” said Jeff Chadha, Chair of the Fraser Valley Real Estate Board. “Whether this is an indication of further sales trends, remains to be seen, especially as the feds eye a possible additional cut before year-end.”
“October’s healthy sales boost is a welcome development for buyers and sellers alike,” said Baldev Gill, CEO of the Fraser Valley Real Estate Board. “The coming weeks and months will shed more light on whether buyer optimism has returned now that the cycle of interest rate cuts is in full swing.”
“After waiting it out on the sidelines for a number of months, buyers seem to be finally responding to the series of successive rate cuts by the Bank of Canada,” said Jeff Chadha, Chair of the Fraser Valley Real Estate Board. “Whether this is an indication of further sales trends, remains to be seen, especially as the feds eye a possible additional cut before year-end.”
“October’s healthy sales boost is a welcome development for buyers and sellers alike,” said Baldev Gill, CEO of the Fraser Valley Real Estate Board. “The coming weeks and months will shed more light on whether buyer optimism has returned now that the cycle of interest rate cuts is in full swing.”
LINK to the November 2024 FVREB statistics.
VIREB: BALANCED MARKET OFFERS THE BEST OF BOTH WORLDS
Although board-wide active listings of all property types dropped from September, they were still at their second-highest level since 2019. Slowing inflation, rate cuts, and a strong Vancouver Island economy that’s outpacing the rest of the province have revitalized VIREB’s housing market.
“We saw healthy sales increases in October, ranging from 36% for condo apartments to 45% for single-family homes,“ says VIREB CEO Jason Yochim. “With an absorption rate of 18% and around five months of inventory, the VIREB market is currently in balanced territory.” Balanced markets with healthy inventory levels offer buyers and sellers the best of both worlds. Current listings aren’t flying off the market, but they’re also not lingering for too long.
“It looks like we’ll close out 2024 on a good note, with about 7,400 sales, significantly higher than the 7,114 sales seen in 2023,” adds Yochim.
Although board-wide active listings of all property types dropped from September, they were still at their second-highest level since 2019. Slowing inflation, rate cuts, and a strong Vancouver Island economy that’s outpacing the rest of the province have revitalized VIREB’s housing market.
“We saw healthy sales increases in October, ranging from 36% for condo apartments to 45% for single-family homes,“ says VIREB CEO Jason Yochim. “With an absorption rate of 18% and around five months of inventory, the VIREB market is currently in balanced territory.” Balanced markets with healthy inventory levels offer buyers and sellers the best of both worlds. Current listings aren’t flying off the market, but they’re also not lingering for too long.
“It looks like we’ll close out 2024 on a good note, with about 7,400 sales, significantly higher than the 7,114 sales seen in 2023,” adds Yochim.
LINK to the October 2024 VIREB statistics.
STATS CENTRE REPORTS
The Stats Centre Reports for the GVR for November are available now on our website at this link under the "BLOG AND STATS" heading. They are automatically updated every month on our website as they become available. LINK
Note that you may have to refresh the screen a few times until all the reports come up. This is a problem with the Real Estate Board website.
FUN FINDS (Click on the pictures below)
WINTER SAFETY VIDEO and HOME IMPROVEMENT TIPS
