Detached Prices Up in Fraser Valley, Greater Vancouver Real Estate Markets

Low inventory levels continue to support detached housing values in both the Fraser Valley and Greater Vancouver real estate markets in the first half of 2024, according to the 2024 Hot Pocket Communities Report by RE/MAX Canada.

Median prices increased in almost 71 per cent of Greater Vancouver real estate markets and in just over 83 per cent of markets in the Fraser Valley in the first six months of the year, according to Tim Hill of RE/MAX All Points Realty based in Vancouver. Home-buying activity, however, has gradually slowed in both areas, after a strong start to the year. Just 29 per cent of Greater Vancouver housing markets reported an uptick in detached sales, including Bowen Island, Maple Ridge/Pitt Meadows, Port Coquitlam, Sunshine Coast, and West Vancouver/Howe Sound, rising 36.8 per cent, 2.7 per cent, three per cent, 6.7 per cent, and 8.7 per cent respectively. North was the only market in the Fraser Valley to experience an increase in sales, up 6.4 per cent over levels reported during the same period in 2023.

Affordability and lifestyle played a major role in increased home-buying activity, with four of the five Greater Vancouver real estate markets boasting median prices ranging from $945,857 in the Sunshine Coast to $1,465,000 in Port Coquitlam. Detached median values in West Vancouver/Howe Sound softened, likely reflecting a greater number of sales in the lower end of the market. Trade-up activity is occurring as buyers who have built equity in recent years take this opportunity in the market to embark on the next step of homeownership. When the federal government’s plan to raise capital gains tax was introduced, investors who were considering rental properties upscaled their principal residences instead.

While interest rates are falling, the slow drip downwards remains a formidable challenge to buyers in the Greater Vancouver and Fraser Valley detached housing markets. Pent-up demand is brewing, yet buyers appear reluctant to move off the sidelines until the overnight rate drops by at least one full percentage point. Sales, in the interim, are expected to remain soft throughout the remainder of the summer, with greater home-buying activity forecast for the fall. Those who have been biding their time may want to take advantage of softer market conditions while inventory remains stable. Once interest rates stabilize, finding a home may prove to be the biggest obstacle.