Written by Manraj Dosanjh of REW Marking five years since the pandemic, Metro Vancouver real estate remains a strong long-term investment. A guide for first-time buyers, young families and presale purchasers seeking the latest insights for newer resale homes in popular Metro Vancouver neighbourhoods. As we begin a new year and look ahead, it’s a natural time for reflection. This is an opportunity to assess what’s going well and where attention might be needed, while also taking stock of how far you’ve come on your personal journey, despite life’s inevitable twists and turns. In the context of the local real estate market, it’s hard to believe that we’re approaching the five-year mark since COVID-19 was declared a pandemic, dramatically reshaping the world around us. While nearly half a decade has passed, the rapid pace of change during this period has made time feel like it’s flown by. How we work and live has been significantly disrupted, ushering in a new phase of growth for real estate markets across the region. Metro Vancouver real estate has proven its resilience through these challenges. Whether as an investment or a personal home, the market has weathered significant obstacles. Despite concerns of a potential collapse in property values, with interest rates reaching their highest levels in over 20 years, residential property values have seen double-digit growth since the pandemic began. Even with the challenges of the past five years and ongoing economic uncertainty, residential prices have remained both resilient and stable. While economic risks still persist, I am confident that prices will continue to hold steady. When comparing the resale market from December 2023 to December 2024, total sales were down slightly by 23%, primarily due to a drop in demand for one- and two-bedroom condos. Higher interest rates have kept many investors, first-time homebuyers and young professionals on the sidelines. However, recent rate decreases have started to bring buyers back into the market, although the recovery is happening at a slower pace than initially expected. In the condo market, subdued demand over the past year has resulted in one of the lowest absorption rates for new pre-sale projects in recent history. While this has created a temporary lull, it could lead to challenges in the medium-to-long term, as the limited supply of new pre-sale projects suggests a potential future shortage. This presents a valuable opportunity for buyers seeking high-quality, well-located properties in communities poised for growth. Despite the economic challenges the region has faced – from the 2008 financial crisis to the pandemic five years ago – Metro Vancouver real estate has consistently proven its long-term value. As I always tell my clients, block out the noise, invest in the best real estate and hold it for the long term – your future self will thank you. Entry-level townhomes declined month-over-month, but rose year-over-year. Despite a 37% monthly decline, newer townhome sales rose 14% year-over-year, signaling a slight return of end-user and young-family buyers seeking more space. As single-family homes become increasingly out of reach for many, demand for townhomes is likely to continue to grow. However, while demand increases, limited development of new townhome projects may put upward pressure on prices as Millennials and Gen Y enter their prime home-buying years. Active listings increased 34% year-over-year, shifting the market from last year's strong seller's dominance towards a market that favours buyers. Given the seasonality that December brings, and the continued wait-and-see approach buyers are taking with interest rates, these conditions may not persist for long. Current market conditions may present a favorable opportunity for townhome buyers. In November, median townhouse prices ranged from $823,750 in Willoughby, Langley, to $1.73 million in Westside Vancouver. One-bed condo sales were down compared to last year. Newer one-bedroom condo sales in December 2024 were down 28% compared to the previous year, as demand from first-time home buyers and investors remains relatively subdued. Listings were up by 26% compared to the same period last year. The median list price of available one-bedroom condos ranged from $465,000 in Surrey City Centre to $689,000 in Downtown Vancouver. The one-bedroom condo market is currently a buyer's market, except in East Vancouver and Richmond, where inventory decreased by 21% and 19%, respectively, leading to a seller's market in those areas. As interest rates continue to return to the neutral zone, you can expect sales activity to increase for this entry-level market. In December, newer one-bedroom median sale prices ranged from $457,500 in Surrey City Centre to $740,000 in Downtown Vancouver.