Why are there so many listings on the market in Greater Vancouver?

INTRODUCTION

When I opened up the latest stats from Greater Vancouver Realtors, I was taken aback by the sheer volume of listings on the market in the Lower Mainland - more than 12,000. That is a lot for any market.

So what’s causing this spike in homes on the market? I have my own suspicions based on conversations from our partners in both British Columbia and Alberta. I presumed this increase in listing activity was primarily due to inter-provincial migration to Alberta and I suspect that’s still part of what’s happening.

When I reached out to REW partner Ty Corsie from Royal LePage - Wolstencroft, he shared his insights into what’s behind this ‘massive amount of inventory’ on the market right now. I think we can all agree that sellers always list in the spring anyways but Ty lists a few new reasons as to why inventory has spiked.

The effect of government legislation.

The federal government released its housing strategy last month and we spoke about what that could mean for buyers and sellers in our article, Unpicking the Federal 2024 Budget. Sellers are trying to offload properties prior to the new capital gains taxation policy taking effect June 25th. While I don’t totally agree this will have the impact people think it will have on the sale of secondary residences, the move, compounded with the new BC short term legislation restrictions, makes for a compelling case to sell if you’re an investor in British Columbia.

Interest rates are still biting.

It’s pretty clear that buyers (and agents) anticipated at least one interest rate cut by June of this year. With less than a month until the next announcement on June 5th, I’m not so sure we still have that same optimism. Corsie predicts that even if there’s a reduction of 25 base points, there will be little effect on the market. Even if a rate decrease brings more consumer confidence, will enough buyers buy enough properties to balance out the market? I’m not so sure. With 12,000 listings on the market, it seems to be a buyer’s world out there.

Adding fuel to the fire, buyers who bought while interest rates were high, bought with the anticipation that rates will come down - we all thought this. That reality hasn’t quite come to fruition, so it also seems that homeowners simply can’t afford their mortgages any longer - there’s only so much stretch a budget can take before breaking.

Grass is always greener…

High costs of homeownership and high costs of living in general have people listing and relocating, often outside of BC.

Recent stats show nearly 70,000 people left BC last year - most of them to Alberta. This was the first time in more than a decade that more people left BC than moved here.

“It used to be a sell and a buy, staying in the same market,” says Corsie. “Now it’s a sell it and leave.”

Tips for buyers and sellers.

Key strategies for sellers right now? Set expectations and price accordingly. “Cheapest house on the nicest block mentality,” says Corsie.

Key strategies for buyers? They have a lot of choices right now, but it’s still super important to understand the nuances of specific neighborhoods and understand how absorption rate can still be different for specific types of properties depending on their needs and interests. Savvy agents know that when rates drop, competition gets fierce.

For me, stats in May are going to tell us a lot. Will buyers dive in and snatch up the properties available? Or will they keep waiting until mortgage rates start to dip?

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

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