Inventory of newer entry-level homes continued to grow in April 2024, with condo, townhome, and single-family inventory increasing between 18 to 25 percent over the month. The one-bedroom condo market experienced the highest growth in inventory at 25 percent, driven primarily by two markets: Surrey City Centre and Burnaby.
This increase in supply is welcomed by buyers, as the market as a whole is entering a more balanced territory. March and April officially mark the beginning of the Spring real estate market, during which both listings and sales are expected to increase. However, high interest rates, changes to the capital gains tax, and new tenancy protection policies can be attributed to some of the more significant increases in inventory over the month.
Apart from the single-family market, the condo and townhome segments saw sales decrease by 24 and 42 percent over the month, respectively. Sales of entry-level townhomes decreased across all tracked markets. This can be attributed to both a lack of options in markets such as Willoughby, Langley, where the sold-to-listings ratio is 31 percent (indicating a firm seller’s market), and a lack of affordable options in markets such as Vancouver Westside. In the latter, zero sales were recorded, but there are 43 active listings with a median list price of $1,850,000.
With a wave of new presale projects being launched throughout the region—primarily driven by the Tri-Cities, Surrey, and Langley markets—developers are monitoring the newer resale market and adjusting presale prices and incentives accordingly. Consequently, we're witnessing some of the best presale purchase opportunities in years, driven by low deposits, pricing credits, and staggered deposit structures.
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A considerable portion of this inventory consists of newly completed spec homes, presenting buyers with an opportunity to negotiate better pricing as developers aim to offload inventory due to monthly carrying costs eating into profit.
Manraj Dosanjh
Dexter Realty
Sales of entry-level townhomes significantly down across the region.
Sales of entry-level townhomes decreased by 42 percent compared to the previous month and were down 33 percent compared to April 2023.
Listings increased by 21 percent over the month, primarily driven by a 94 percent increase in Willoughby, Langley, and a 71 percent increase in South Surrey. The influx of new inventory is good news for buyers in Willoughby, where limited options have favored sellers. In contrast, South Surrey shifted to a buyers' market over the month, with only 3 townhomes sold in April 2024, despite having 36 active listings.
Richmond and North Vancouver are the only two other sellers’ markets. In April 2023, 10 newer entry-level townhomes sold in Richmond at a median sale price of $1,381,000.
Townhome sales in Westside Vancouver remain dismal. Despite 43 active listings, zero homes were sold in April 2024. The median list price of these homes is the highest across the tracked markets at $1,850,000.
Sales of newer one-bed condos drop across most of the region while inventory increases.
In April 2024, the one-bedroom condo market witnessed another month of declining sales and rising inventory, with sales dropping by 24 percent and inventory increasing by 25 percent.
With the exception of the Willoughby and Coquitlam markets, where sales rose by 67 and 45 percent respectively, all other markets experienced a decrease in sales during the month. However, 6 of the 9 tracked markets are still experiencing firm sellers’ market conditions. The lack of supply in areas such as South Surrey, where there are only 2 active one-bedroom listings, continues to put upward pressure on pricing.
The median sold price to list price was highest in South Surrey, Langley, and Coquitlam, with homes selling between 99 to 106 percent of list price. This trend is worth monitoring, as continued pressure could further push prices higher in these markets.
Surrey City Centre, Burnaby, and Downtown Vancouver witnessed some of the strongest inventory growth and are coincidentally the only three buyers’ markets. It’s a great time to negotiate prices in these markets.
An opportunity for buyers to negotiate prices for two-bed condos in Surrey and Downtown Vancouver.
Sales of new two-bedroom condos declined by 28 percent over the month, echoing the trend seen in the one-bedroom condo market, while inventory increased by 18 percent.
Surprisingly, Downtown Vancouver was the only market to experience an increase in sales during the month. Eleven newer two-bedroom condos sold in April 2024 at a median sale price of $1,350,000. Currently, there are 105 listings with a median list price of $1,699,000, indicating that the most affordable two-bedroom condos are driving sales in this market.
Burnaby, fueled by Metrotown and Brentwood, accounts for a quarter of available new two-bed condo supply amongst the tracked markets. The median sale price in Burnaby in April 2024 was $890,000, while the median list price is $949,000.
With a median list price of $849,000, Coquitlam perfectly bridges the gap between Burnaby and sought-after South or Fraser markets like Surrey and Langley. Nearly $100,000 less than Burnaby, Coquitlam is becoming an attractive option for buyers seeking homes in the North of Fraser markets.
As was the case for the one-bedroom condo market, Surrey City Centre and Downtown Vancouver are the only two buyers’ markets. Once again, it’s an opportune time for buyers to negotiate prices in these two markets.
Newer entry-level single family homes see uptick in sales in April.
The newer entry-level single-family market saw a notable uptick in sales, with a 23 percent increase driven primarily by East Vancouver and Vancouver’s Westside.
Interestingly, despite being the most expensive markets, Westside Vancouver, East Vancouver, Burnaby, and Richmond are the only four sellers’ markets. In April 2024, the median sale price of a newer entry-level home in Vancouver’s Westside was $4,118,000. In contrast, Surrey stood out as the most affordable market for entry-level single-family homes, with a median sale price of $1,530,000.
The South of Fraser markets experienced the strongest surge in new inventory, with listings increasing by 30 to 41 percent. A considerable portion of this inventory consists of newly completed spec homes, presenting buyers with an opportunity to negotiate better pricing as developers aim to offload inventory due to monthly carrying costs eating into profit.
Reasons why you should consider newer-home resale data:
- Facilitates wise choices in new pre-sale purchases by providing valuable comparables, offering insights into product considerations for both personal use and investment.
- Great for those looking to purchase housing that is still in the early stages of its lifecycle – this means less repairs & maintenance during the first few years of ownership.
- More recent building and developer history – provides assurance and certainty when making one of the most important transactions of your life.
- Homes include some of the latest design and technology – great for resale value.
- Monthly sales statistics crucial for evaluating and planning new housing developments.
- These figures are routinely used by industry stakeholders such as real estate developers to understand the value of land, and anticipated market values for newly completed homes.
