February was another cautious month in the Vancouver real estate market.
While there were lots of signs that our market had stabilised and was picking up momentum at the tail end of 2024, that shifted in the New Year...and this softer, weaker market has now become the new trend.
Demand remained softer than expected with 510 sales. This was nearly +23% more than January (but down -18.3% from a year ago). The thing is, that wasn't as much of an increase into February as we normally see...and so these 510 sales are well off (-34.8%) the 10-year average.
New Listings increased to 1,621 which was down -9.8% from last month and just +10.8% higher than last year (this was +12.3% over the 10-year average). In the meantime, Total Active Listings rose to 4,089 (+6.9% from last month and +23.1% over a year ago). This is a very substantial +38.3% over the 10-year average.
So we find ourselves with stalling demand (sales) and increasing supply. As we approach spring it's normal to see New Listings flood the market but rising demand tends to mop that up. This year is oddly different as demand remains below normal levels it's not enough to pick up the excess inventory levels.
The one saving grace is that New Listings aren't running away here. It looks like seller's are realizing market conditions aren't ideal for them and thus not putting their homes on the market if they don't have to.
Prices continue to remain quite robust in Vancouver. Despite softer demand and high inventory levels over the past year many housing types have actually increased in value and continued to do so last month (East Van condos and Westside Townhouses being the exception).
My sense is that many market participants are feeling uncertain right now, and they have for the last few weeks or so. The talk of tariffs as well as the 51st state rhetoric has put a lot of uncertainty into all of our lives, and that's obviously impacting people's desire/ability to make major financial decisions.
I'm not going to pretend that I'm an economist, or a political scientist.
I'm not sure anyone really knows where things are heading here...BUT, Vancouver's economy is relatively insulated from the impact of tariffs (according the Conference Board of Canada) and these declining interest rates will eventually push people into action.
There are some excellent opportunities in the market right now for people in the right situation. Of course, if your own economic situation is tenuous then it makes sense to be cautious...but if you have the money, the security and the desire to make a move this can be a fruitful time to act.
As always, reach out if you'd like to chat. I'm always willing to give my thoughts on how the current market might impact your specific situation.
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