Vancouver real estate sales picked up last month, but lofty inventory is easing market pressures. Greater Vancouver Realtors (GVR), formerly REBGV, data shows the price of a composite benchmark (typical) home fell slightly in December. The minor decline emphasized uncertainty about where prices should head, remaining mostly unchanged from last year. Despite sales seeing enormous annual growth, the volume remains historically weak. At the same time, inventory is still high and taming price growth from increased demand and cheaper credit.
Vancouver Real Estate Prices Nearly Unchanged For 3-Months
The price of a typical home across Greater Vancouver.
Source: GVR; CREA; Better Dwelling.
Greater Vancouver real estate prices barely budged for a third month. The benchmark price fell 0.1% to $1.71 million in December, leaving prices just 0.5% higher than last year. At less than a point, the advance failed to meet even half the target rate of inflation. From the chart above, it’s easy to see this is a big adjustment from the exuberant growth the region is used to.
Vancouver Real Estate Sees Annual Growth Return
The 12-month percent change for a composite benchmark (typical) home across the Greater Vancouver MLS.
Source: GVR; CREA; Better Dwelling.
Annual growth was minor but still growth. In fact, it’s the first positive print in months—though the negative periods only managed to make a minor dent in prices. Unlike Toronto, Vancouver home prices have not experienced a substantial correction. Prices remain just 7% (-$88.4k) below the record high reached in 2022.
Vancouver Sales Remain Historically Weak, Inventory High
Most headlines focused on Greater Vancouver home sales showing huge annual growth. However, discussion of the base effect was largely absent—sales remained historically weak for the month. The board reported 1,765 sales in December, an increase of 31.2% from last year. By itself, that would be massive annual growth without any further context. But it’s still 14.9% below the 10-year average for the month, and one of the weaker Decembers in recent years.
Meanwhile inventory remains much higher than usual. The notoriously scarce market is suddenly flush, with 10,948 active listings in December, an increase of 24.4% from last year. Not quite the same growth as sales, but the build up of inventory has active listings 25.3% higher than the 10-year average. Smaller annual growth than sales, but way more inventory than usual.
Historically weak sales and strong inventory has left the market in rarely seen territory—balanced. The sales to active listings ratio (SALR) slipped to 16.8% in December, shedding half a point from a month prior. The board-preferred demand measure is considered balanced between 12% and 20%, with supply considered healthy relative for demand. Analysts expect little to no movement in price when a market is balanced, summing up last month’s market nicely.
