The real estate market in BC experienced mixed signals in Q2 2024, according to an Edge Realty Analytics report.
Sales
There was a modest quarter-over-quarter increase of 1.2%, indicating some recovery or stabilization compared to the previous quarter. However, year-over-year, sales were down significantly by 13.3%, suggesting a broader slowdown compared to the same period last year.
Listings
New listings saw a quarterly rise of 3.1%, and a substantial year-over-year increase of 19.0%, as more property owners entered the market.
Active listings increased by 7.8% quarter-over-quarter and surged by 40.3% year-over-year. This significant rise in active listings points to a growing inventory which may provide more options for buyers but also indicates that properties are staying on the market longer.
Sales-to-New Listings Ratio
The ratio slightly decreased from 46.3% in Q1 2024 to 45.3% in Q2 2024.
Months of Inventory
The months of inventory, or how long it would take for all the current homes on the market to sell if no new homes were listed, increased from 5.6 in Q1 2024 to 5.8 in Q2 2024, again indicating more options for buyers and a need for sellers to price accordingly.
Prices
Prices dipped slightly by 0.6% quarter-over-quarter and were down by 1.0% year-over-year. The small decline suggests that while prices are not falling drastically, there is some downward pressure, possibly due to the increased supply and slower sales.
Construction
The number of properties under construction grew by 3.1% quarter-over-quarter and by a notable 13.8% year-over-year. This indicates continued confidence in future demand and a commitment to addressing housing supply issues.
Economic Indicators
Unemployment Rate
The unemployment rate improved slightly, decreasing from 5.5% in Q1 2024 to 5.2% in Q2 2024. For reference, Canada’s unemployment rate overall in June was 6.4%.
Mortgage Arrears
Mortgage arrears saw a minor increase from 0.15% in Q1 2024 to 0.16% in Q2 2024. While the rise is small, it could signal emerging financial stress among some homeowners.
Population Growth
The population grew by 0.7% quarter-over-quarter and by 3.3% year-over-year.
Rentals
As of July 2024, according to Rentals.ca, Vancouver and Burnaby had the highest average rents for one- and two-bedroom rentals.
Vancouver experienced an increase in rental prices month-over-month, with one-bedroom apartments rising by 2.0% to $2,724 and two-bedroom apartments increasing by 0.5% to $3,648. However, year-over-year, rents for one-bedroom and two-bedroom apartments fell by 7.5% and 5.6%, respectively.
Burnaby saw slight decreases in rental prices, with one-bedroom rents down by 0.1% month-over-month to $3,543 and two-bedroom rents down by 0.9% to $3,183. Year-over-year, one-bedroom rents decreased by 1.4% and two-bedroom rents by 3.9%.
Victoria exhibited consistent growth in rental prices, with one-bedroom apartments rising by 0.4% month-over-month to $2,178 and two-bedroom apartments by 0.5% to $2,859. Year-over-year, one-bedroom rents increased by 5.2% and two-bedroom rents by 7.4%.