Metro Vancouver Real Estate Market Insights: Stats Centre Reports - December 2024

Metro Vancouver Real Estate Market Insights: Your Comprehensive Real Estate Update with Jersey Li ☀️

It's always sunny with me ☀️ This is your trusted REALTOR®, Jersey Li 😄!

Welcome back to another edition of the Stats Centre Report! I’m Jersey Li, your trusted REALTOR®, and I’m here to keep you informed about the latest trends shaping Greater Vancouver’s real estate market. As we close out 2024, the market remains a mixed bag—showing signs of recovery while still facing challenges from the year’s broader trends. Whether you’re looking to buy, sell, or invest, December presents unique opportunities for savvy buyers to secure great deals. Let’s dive into the numbers and insights to help you make the most informed decisions this month!

Jersey's Market Feedback

The November stats are in, and here’s the breakdown:

Sales Performance: November sales were 28% better than 2023, showing some recovery.
Historical Context: However, it’s essential to keep perspective. Sales remain 12.8% below the 10-year average, making 2024 the weakest real estate year in 24 years.

For buyers, this means December could be a golden opportunity. Here’s why:

Low Inventory: You’ll find fewer listings, but those properties on the market likely belong to sellers who need to sell.
Negotiation Advantage: Buyers can use motivated sellers to negotiate better deals.

Jersey's Market Prediction

Looking ahead to 2025, the real estate market is anticipated to show gradual improvement, supported by potentially lower interest rates that could stimulate activity. However, don’t expect a dramatic surge in prices or transaction volumes—steady, modest growth is the likely trajectory. Here’s what this means for you as a buyer:

For Buyers:

Self-Living Purchases

If you plan to buy a home for personal use, now is a favourable time to make that move. With stabilized prices and a cautious market atmosphere, securing a property for long-term residence can provide both comfort and peace of mind. Focus on areas with strong community appeal and amenities, as they will likely hold their value well.

Investment Properties

Approach investment opportunities with care. While the market is improving, buying condos or presales for pure investment purposes comes with risks, especially given the potential influx of presale assignments in the coming years. Ensure any investment aligns with your financial goals and market trends.

Condo vs. Single-Family Homes

Condos: If your budget is limited, condos remain a practical option for self-living. Look for units in well-managed buildings with desirable locations and amenities to maximize future value.

Single-Family Homes: For those with the financial capacity, single-family homes continue to offer a better return on investment potential. The land component of these properties typically appreciates more significantly, making them a stronger choice for building equity over time.

Whether you’re buying for yourself or considering an investment, understanding these dynamics will help you make a smart, informed decision heading into 2025.

Presales: To Buy or Not to Buy?

My advice for presales? Hold off for the next 3 years. Here’s why:

Current Pricing: Many presales are overpriced compared to newer resale properties.
Assignment Flood: Expect a significant increase in presale assignments in the next two years, creating better opportunities for buyers in the resale market.

The next two years will likely bring slow but steady growth in prices and transactions, making it a safe time to purchase for self-living purposes. For investments, proceed cautiously and focus on properties with strong long-term potential.

Sales Stats:

The real estate market has been a mix of encouraging signs and cautionary tales. November sales have surged by 28% compared to the same period in 2023, reflecting renewed activity and buyer interest. However, when we take a broader view, 2024 sales remain 12.8% below the 10-year average, cementing its position as one of the slower years in recent decades.

This dual perspective underscores the current market’s complexity—there are opportunities for savvy buyers, particularly in the final months of the year, as motivated sellers and limited inventory create conditions ripe for negotiation. With 2025 projected to bring moderate improvements, now is an excellent time to explore options and lock in a deal before the market shifts.

For a comprehensive look at how these trends could impact your buying strategy, I encourage you to explore my full Stats Centre Report. This detailed resource is packed with valuable data and insights tailored to help you navigate the ever-evolving Metro Vancouver real estate market confidently.

Market Insight: The combination of rebounding monthly sales and the year’s overall subdued performance makes December a critical time to act. Buyers can leverage these conditions to secure properties at favourable terms.

Rentals Stats

The rental market continues to show resilience, with demand for rental units remaining robust across Metro Vancouver. Various factors, including population growth, immigration, and a steady influx of students and professionals into the region, support this ongoing trend. The full report can be found here.

This strong demand translates into stable and consistent rental income potential for investors. While property prices have fluctuated, the rental market has remained a bright spot, providing reliable returns for landlords. Vacancy rates remain low in most areas, driving competition among tenants and keeping rental rates on an upward trajectory.

Key Observations for Investors:

Urban Hotspots: Central locations like Downtown Vancouver, Metrotown, and Richmond see particularly high demand, making them prime areas for investment properties.
Family-Sized Units: Larger rental units, such as 2- and 3-bedroom condos or townhomes, are experiencing growing demand as families seek affordable alternatives to single-family homes.
Furnished Rentals: With international students and temporary workers flocking to the region, furnished rentals offer the potential for even higher returns.

Market Tip: If you’re considering an investment property, focus on areas with excellent transit access and proximity to schools or business hubs. These properties are likely to yield consistent occupancy and rental growth, even during periods of broader market uncertainty.

Key Takeaways for November 2024:

Sales Trends:

- November 2024 sales saw a 28% increase compared to 2023, showing signs of recovery.
- However, 2024 overall sales are still 12.8% below the 10-year average, emphasizing the unique opportunities for buyers in a market yet to rebound fully.

Opportunities for Buyers:
- Self-Living Properties: A great time to purchase, especially for long-term residences.
- Negotiation Power: December listings often come from motivated sellers, allowing buyers to negotiate favourable deals.

Caution for Investors:
- Be careful when investing in condos or presales; focus on single-family homes for better ROI.
- Rental demand remains strong, making carefully selected rental properties a stable investment choice.

Market Outlook for 2025:

Lower interest rates are expected to stimulate the market, but prices and transaction volumes are likely to grow slowly.
Presale properties should be approached cautiously, as the market will see an influx of assignments over the next two years.

5. Rental Market:
Strong demand ensures steady rental income, particularly in well-connected urban areas.

By understanding these trends, you can make informed decisions whether you’re buying, selling, or investing in Metro Vancouver’s dynamic real estate market. Let’s navigate the opportunities together!