Written By: Manraj Dosanjh of Dexter Realty

A guide for first-time buyers, young families, and presale purchasers seeking the latest insights for newer resale homes in popular Metro Vancouver neighbourhoods. The Bank of Canada's 0.25% rate decrease in early June has yet to provide the boost the Metro Vancouver real estate market had anticipated. Recent announcements regarding future interest rate decisions, changes in rental policies for tenanted properties, adjustments to capital gains tax and new rules for short-term rentals are continuing to impact the market. Apart from the entry-level single-family segment, which saw a 10% increase in sales over the year, all other markets experienced double-digit declines. Sales of newer townhomes, one-bedroom condos and two-bedroom condos decreased by 38%, 44% and 36%, respectively, over the year. It is interesting to note, however, that prices for all tracked product types have remained relatively flat across most markets, with some even experiencing increases in median sale prices over the year. Data shows that sellers are holding firm on listing prices, anticipating that further rate cuts in the second half of the year will boost demand for resale properties. This detailed breakdown of submarkets in the newer resale market highlights the importance of analyzing each product type and submarket independently, as there is a clear divide between markets with strong demand and those without. Affordability continues to drive demand, with over a quarter of all June 2024 sales occurring in the Surrey, South Surrey and Willoughby, Langley markets. In the new home market, the presale sector remains attractive in select areas of the region. Developers are offering incentives and the price difference between newer resale and presale units is narrower than in previous years. Analyzing newer resale market data can help buyers identify opportunities in the presale market.  

Townhomes sales dipped compared to last year

Sales in June 2024 were down 38% compared to the same period last year. As anticipated, total sales decreased over the month as we moved into the summer season, while listings grew by 17%. Except for Willoughby, Langley, most other tracked markets currently favour buyers. With rates now declining, this presents an opportune time for buyers considering purchasing a townhome in Metro Vancouver. For those seeking affordable townhome options, the Fraser Valley markets remain attractive. Surrey, South Surrey and Willoughby offer inventory with a median list price of $950,000 or below, nearly $275,000 less than Coquitlam, the most affordable market north of the Fraser.  

One-bedroom condos are one of the hardest-hit segments

Sales in June 2024 were down 44% compared to the same period last year. The one-bedroom condo market has been one of the hardest-hit segments, with both first-time buyers and investors particularly affected by increased interest rates and changes in policies such as capital gains and rental protection laws. For those seeking affordable, newer one-bedroom condos north of the Fraser, Coquitlam is an excellent option. In June 2024, the median sale price was $585,000, over $80,000 more affordable than neighboring Burnaby. Surrey City Centre and Downtown Vancouver remain the strongest buyers' markets, each with a 7% sales-to-active listings ratio. The median list price of active listings is $498,888 in Downtown Surrey and $788,000 in Downtown Vancouver, a spread of nearly $300,000.  

Two-bedroom condos are still struggling

In June 2024, sales decreased by 36% compared to the same period last year. Sales were down just 5% from last month, while inventory increased by a modest 4%. Coquitlam experienced the largest monthly jump in sales, with a 22% increase. This is attributed to Coquitlam being the most affordable submarket for purchasing two-bedroom condos north of the Fraser. The $80,000 difference in median list prices between Coquitlam and neighboring markets such as Burnaby will continue to fuel demand in this area. It remains the only market north of the Fraser that favours sellers. Similar to the one-bedroom condo market, Downtown Surrey and Downtown Vancouver are the strongest buyer’s markets, with sales-to-active ratios of only 7% and 8%, respectively. The median sale price in June 2024 was $642,500 in Downtown Surrey and $1,293,950 in Downtown Vancouver, a spread of nearly $650,000.  

Single-family homes are slow to move

Entry-level single-family home sales remain sluggish, with a 21% monthly decrease and a modest 10% annual increase, reaching a total of 34 sales, up by four compared to June 2023. Demographically, young professionals and families aiming to upgrade to entry-level detached properties have been significantly affected by rising interest rates and affordability challenges. Surrey offers the most affordable median entry point into the newer entry-level market at $1,729,999, while Coquitlam represents the most affordable market north of the Fraser at $2,175,000. More than 55% of available entry-level supply is located in the tracked Fraser Valley markets. Another quarter is situated in the City of Vancouver, where the median list price for available supply is $2,890,000 in East Vancouver and $4,288,000 on the Westside.  

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.