As we approach the end of 2023, the real estate landscape in Metro Vancouver is witnessing a significant shift, particularly in the apartment market. For sellers or those considering entering the market, this presents a unique opportunity. Let's delve into the key points from the November market data and understand how the current conditions are favorable for sellers.
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Abundant Inventory and Increased Choices:
- A substantial increase in housing inventory across Metro Vancouver is offering home buyers one of the most extensive selections since 2021.
- With 3,369 detached, attached, and apartment properties newly listed for sale in November 2023, sellers now have the chance to showcase their properties in a market with increased options for potential buyers.
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Balanced Market Conditions:
- The Real Estate Board of Greater Vancouver (REBGV) reports a balanced market with a sales-to-active listings ratio of 16.3% in November 2023.
- For apartment properties specifically, the ratio stands at 18.2%, indicating a market equilibrium that can benefit sellers.
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Impact on Home Prices:
- Analysis of historical data suggests that downward pressure on home prices occurs when the sales-to-active listings ratio dips below 12%. In contrast, upward pressure is observed when it surpasses 20% over several months.
- With the current ratio, sellers are positioned in a market where prices have experienced a modest decrease since the summer, presenting an advantageous scenario for potential sellers.
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Favorable Economic Outlook:
- According to Andrew Lis, REBGV Director of Economics and Data Analytics, market conditions for buyers are arguably the most favorable seen in some time.
- While there may not be Cyber Monday discounts, prices have edged lower by a few percent since the summer. Additionally, with expectations of modestly falling mortgage rates in 2024, sellers can anticipate continued interest from potential buyers.
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Apartment Market Performance:
- Sales of apartment homes reached 850 in November 2023, reflecting a 0.4% increase from November 2022. The benchmark price for an apartment home is $762,700, showing a 6.2% increase from the previous year.
- With a sales-to-active listings ratio of 18.2%, apartment sellers are in a market segment where conditions are conducive for successful transactions.
For sellers in the Metro Vancouver apartment market, the current dynamics present a promising window of opportunity. Abundant inventory, balanced market conditions, and a favorable economic outlook create an environment where sellers can position their properties competitively. As we head into 2024, these conditions suggest that now might be an optimal time to explore selling opportunities in the vibrant Vancouver real estate market.
If you are on the hunt for a knowledgable real estate advisor to help you navigate the Vancouver real estate market, Taylor Ross is the realtor for you. Contact her at taylor.ross@engelvoelkers.com to figure out how she can make your real estate dreams become reality today.
