Will April Listings Bring May Sales?

Dexter’s April 2024 Report Highlights:

• 64% Increase in New Listings: April saw a massive surge in new listings, up 64% from last year.

• Buyer Re-engagement: Buyers are slowly returning to the market.

• Townhome Sales Surge: Townhomes experienced a notable increase in sales.

• Vancouver’s Sales Divide: East and West Vancouver show different sales activity trends.

Market Overview:

April 2024 brought an influx of new listings in Greater Vancouver, reminiscent of the fast-paced market of 2021. Listings were up 41% from March, giving buyers more choices despite ongoing interest rate hesitations from the Bank of Canada. Fixed mortgage rates, nearly 2% lower than variable rates, have made the market more appealing.

Government Policy Impact:

The federal budget released on April 16 introduced changes to capital gains tax and other housing-related policies, causing market ripples. The tax change, which increases the taxable portion of capital gains above $250,000, prompted some property owners to sell before the June 25 deadline. This could reduce the number of resale homes available, exacerbating the housing supply issue.

Sales Data:

Greater Vancouver saw 2,831 properties sold in April, a 17% increase from March and a 3% increase from April last year. This marks the fourth consecutive month of sales growth, driven by greater selection and stable fixed mortgage rates. Sales picked up mid-month, suggesting a potential repeat of May 2023's high sales figures.

Inventory and Market Conditions:

Despite the surge in new listings, the market remains tight with only four months of supply, indicating a seller’s market. Vancouver's East Side, for example, stayed at four months' supply despite a 44% increase in listings from March and a 78% increase from April last year. In contrast, Vancouver’s West Side has six months of supply, showing a balanced market.

Regional Insights:

• North Vancouver: Active listings rose 82% from March, yet the area maintains a seller's market with three months of supply.

• Port Moody: Experienced a 62% increase in sales month-over-month, reducing supply from four months to three.

• Burnaby and New Westminster: Both areas show four months of supply, with slight sales increases and active listings rising.

Final Thoughts:

April’s surge in new listings may translate into higher sales in May, offering buyers more choices and possibly maintaining flat prices over the next few months. Despite government policies, market dynamics of supply and demand will continue to drive property values. Buyers have a unique opportunity to make decisions in a market that’s starting to show more options.

Summary of Numbers:

• Greater Vancouver: 2,831 units sold in April, up 17% from March and 3% from April 2023. Active listings at 12,491, up 42% from last year.

• Vancouver West Side: 471 units sold in April, active listings at 2,778.

• Vancouver East Side: 349 units sold, active listings at 1,369.

• North Vancouver: 248 units sold, active listings at 711.

April’s increase in new listings has set the stage for a potentially active May in the real estate market, with opportunities for both buyers and sellers to navigate the changing landscape.