The market was supported by "surprising resilience" in the face of sky-high borrowing costs
The Metro Vancouver housing market ended 2023 with a semblance of balance, supported by “surprising resilience” amid the highest borrowing costs in over a decade, according to the Real Estate Board of Greater Vancouver.
The latest REBGV figures indicate that residential sales in the region totalled 26,249 in 2023, marking a 10.3% drop from the 29,261 sales recorded in 2022.
This also represented a substantial 41.5% decline from the 44,884 sales in 2021, and a 23.4% deficit from the region’s 10-year annual sales average of 34,272.
Andrew Lis, director of economics and data analytics at REBGV, said that these numbers belie the fact that 2023 was actually a strong year for Metro Vancouver’s housing sector.
“In our 2023 forecast, we called for modest price increases throughout the year while most other forecasters were predicting price declines,” Lis said. “The fact that we ended the year with 5%-plus gains in home prices across all market segments demonstrates that Metro Vancouver remains an attractive and desirable destination, and elevated borrowing costs alone aren’t enough to dissuade buyers determined to get into this market.”
The region’s composite benchmark residential price in Metro Vancouver stood at nearly $1.169 million, a 5% gain from December 2022 despite being a 1.4% decrease compared to November 2023.
The family income required in order to buy an average home in Vancouver rose by more than $25,000 within only eight months in 2023.
— Canadian Mortgage Professional Magazine (@CMPmagazine) December 19, 2023
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Properties listed on the Multiple Listing Service (MLS) in Metro Vancouver totalled 50,893 in 2023, which was 7.5% lower on an annual basis. The aggregate number of properties listed last year was 10.5% below the region’s 10-year total annual average of 56,868.
The total number of active listings on the Metro Vancouver MLS was at 8,802 as of the end of December, a 13% upswing from December 2022’s 7,791 units.
“Ultimately, the story of 2023 is one of too few homes available relative to the pool of willing and qualified buyers,” Lis said.
“Sellers were reluctant to list their properties early in the year, which led to fewer sales than usual coming out of the gate. But this also led to near record-low inventory levels in the spring, which put upward pressure on prices as buyers competed for the scarce few homes available.”
