New(er) Home Resale Report: September 2024

I created the New(er) Home Resale Report to offer a different perspective – a fresh, focused source of insights for those seeking newer home options or exploring the presale market, whether for personal use or investment. This report provides an overview of Metro Vancouver’s entry-level market, which is particularly important for first-time buyers, young families, and investors.

While monthly statistics from various real estate boards offer a 30,000-ft. view of the market, real opportunities lie in the details: submarkets, product types, and building history. That’s where the true story unfolds, giving savvy buyers and sellers their edge.

As a data-driven advisor, my approach is straightforward: dig deep, uncover microtrends, and connect the dots. This month’s New(er) Home Resale Report does just that, revealing trends you won’t want to miss. For example, while the condo market continues to soften in most areas across Metro Vancouver, this presents prime opportunities for early movers. In real estate, early movers are often buyers or investors who act quickly to secure properties, especially during shifts in market conditions.

The subdued condo market over the past year has created opportunities for savvy buyers. In this environment, pre-sale projects offer strong pricing incentives, attractive deposit structures, and buyer credits designed to drive interest. Additionally, the government has doubled down on efforts to stimulate new construction by introducing insured mortgages for all buyers of new home (pre-sale) construction, allowing for down payments of less than 20%. Buyers who can leverage these market conditions stand to gain the most.

Let’s talk specifics. As an example of uncovering microtrends, I’ve developed a strong conviction that Willoughby, Langley stands out as one of the region's strongest areas for presale investment. Demand in the resale market outpaces supply, pushing prices up and making the pre-sale market an increasingly attractive alternative. With median resale prices for one-bedroom condos around $490,000 and two-bedrooms at $645,000, the pre-sale options are compellingly in line with current resale prices.

If you’re ready to explore these opportunities, connect with an agent who knows how to leverage these trends. Smart moves today can lead to gains tomorrow.

Entry-level townhomes started to move, but the market remains balanced.

Newer entry-level townhome sales rose by 31% over the month and nearly 81% year-over-year. This increase in sales was accompanied by a slight 5% rise in inventory over the month, with a substantial 120% increase compared to the same period last year.

Overall, the townhome market remains balanced, with only Willoughby, Richmond, and North Vancouver favoring sellers. As a leading area for new townhome development, Willoughby continues to attract buyers from across the region with some of the most affordable townhome prices available today.

In September, newer median townhome sale prices ranged from $862,500 in Surrey to $1,700,000 in East Vancouver.

Nearly 60% of the available townhome inventory is concentrated in Surrey, South Surrey and Langley, offering young families the region's only newer townhome options listed below $1,000,000.

One-bedroom condo sales are up over the month, but remain low compared to last year.

Newer one-bedroom condo sales increased by 24% over the month, while listings remained unchanged. However, sales are down 18% compared to last year, while listings have increased by 33% over the same period. Only Richmond and Downtown Vancouver experienced a decrease in sales over the month.

Overall, the market remains balanced with a 13% sales-to-active listings ratio, edging towards a buyer’s market. However, when examining each submarket individually, it’s clear that Willoughby, Coquitlam, and North Vancouver continue to experience strong demand, favoring sellers in all three areas.

For buyers and investors considering presale developments in Metro Vancouver, these conditions present a compelling investment thesis for Willoughby, Coquitlam and North Vancouver. This is supported by the fact that the median sale prices in Willoughby and Coquitlam align with those of new presale projects launching in these markets. With completion dates scheduled two to four years out, this further underscores the investment potential in these areas.

In September, prices for newer one-bedroom condos ranged from $465,500 in Surrey City Centre to as high as $625,000 in Burnaby and Richmond.

Two-bedroom condos were up, though inventory levels didn’t change.

The newer two-bedroom condo market experienced a 33% increase in sales over the month, while inventory remained unchanged. Sales were down slightly by 3% compared to the same period last year, while inventory is up just 5% during that time.

Willoughby, Langley and East Vancouver saw the largest increase in sales, rising by 150% over the month.

Similar to the townhome and one-bedroom condo markets, Willoughby continues to experience strong demand for multi-family homes, with the two-bedroom market being the only area favoring sellers. In the region as a whole, the Fraser Valley markets are the only places where you can purchase a two-bedroom condo for less than $700,000.

In September, prices for newer two-bedroom condos ranged from $645,000 in Surrey City Centre to $1,445,000 in Downtown Vancouver.

Single-family homes made some major jumps, but remained tepid overall.

Sales of newer, entry-level single-family homes increased by nearly 89% over the month of September, accompanied by a 25% rise in inventory. Compared to the same period last year, sales were up by 36%, while inventory rose by 42%.

South Surrey saw the strongest jump in sales both monthly and annually, with increases of 450% and 120%, respectively.

Despite these percentage increases, the total number of homes sold in each market remains subdued. Overall, the market is in seller's territory with a 10% sales-to-active listings ratio. North Vancouver is the only market heavily favoring sellers, as it has some of the lowest available supply of newer entry-level homes.

In September, sale prices for newer single-family homes ranged from $1,645,000 in Surrey to $3,900,000 in Vancouver's West Side. With entry barriers so high due to rising prices and heightened interest rates, it's no surprise that sales for single-family homes remain tepid. This, in turn, pushes potential buyers down the property ladder, ultimately putting upward pressure on townhome prices across the region.

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.

Read the full Dexter Realty report by Manraj Dosanjh.