Value of Vancouver Detached Homes Buoyed by Supply Shortage

Median values for detached housing in the Vancouver real estate market were buoyed by supply shortages at affordable price points in the first half of 2024, according to the 2024 Hot Pocket Communities Report by RE/MAX Canada.

Elizabeth McQueen of RE/MAX Select Properties, based in Vancouver, reports that sales of Vancouver detached homes fell just short of 2024 levels in the east end, down 0.6 per cent from the same period in 2023, however median price climbed 4.6 per cent to $1,974,950. Meanwhile, in Vancouver West, sales fell by 5.4 per cent to 439 units, but values rose 1.6 per cent to $3,557,500. West Vancouver/Howe Sound was the one outlier, posting an 8.7-per-cent uptick in home-buying activity, with detached sales rising to 213, up from 196 in 2023. The influx of buyers into the lower end of the market can be attributed to an anticipated uptick in housing prices as the Bank of Canada’s (BoC) winds down its quantitative tightening mandate.

At luxury price points – most over the $5-million mark – many sellers are pulling their detached listings while they take a summer “break.” However, non-residents at the upper-end of the market are laser-focused on selling their properties before they are faced with the prospect of another vacancy tax in 2025. As a result, there has been an upswing in the number of high-end homes currently listed for sale, with the average days on market hovering at 70.

Little activity is occurring at the upper end of the market, with 125 sales over $5 million logged in Greater Vancouver, down just over 17 per cent from year ago levels. Concerns regarding economic uncertainty, with events like the upcoming US election and challenges on the Canadian political front, Canadian politics, as well as stock market volatility, hampering activity at the top end.  With just half a point shaved off the Bank of Canada’s benchmark interest rate to date, sales of Vancouver detached homes are unlikely to rebound much over the summer months, and depending on the Bank’s next moves, the market may not show signs of life until late 2024 or early 2025.