Why loan-to-income ratios and switching will be the talk of mortgage markets in 2025

In December 2024, Vancouver's real estate market experienced a notable increase in sales, accompanied by a significant rise in available properties. Data from Greater Vancouver Realtors (GVR) indicated that the benchmark price for a typical home slightly decreased by 0.1%, settling at $1.71 million. This minor adjustment left prices just 0.5% higher than the same period last year, reflecting a stabilization in the market.

The annual growth in home prices, though modest, marked the first positive trend in several months. Despite this uptick, Vancouver's home prices have remained relatively stable, avoiding the substantial corrections seen in other markets like Toronto. Currently, prices are approximately 7% below the record highs achieved in 2022, indicating a resilient market.

Home sales in December totaled 1,765 units, representing a 31.2% increase compared to the previous year. However, this figure is still 14.9% below the 10-year average for December, highlighting that, while improved, sales volumes remain historically subdued.

Concurrently, the inventory of active listings reached 10,948, a 24.4% rise from December 2023. This surge has resulted in active listings being 25.3% higher than the 10-year average, providing buyers with more options and contributing to a more balanced market environment.

The sales-to-active listings ratio (SALR), a key indicator of market health, stood at 16.8% in December. This ratio falls within the 12% to 20% range that GVR considers balanced, suggesting that the market is neither favoring buyers nor sellers. Analysts anticipate that such balanced conditions will lead to stable prices in the near future.

Overall, Vancouver's real estate market is exhibiting signs of stabilization, with modest price growth, increased sales activity, and a higher inventory of homes. These factors collectively contribute to a more balanced and sustainable market as the region moves into the new year.