The real estate market in Vancouver’s once red-hot suburbs has cooled in the past six months, as life returns to normal in the “big” city.
In Vancouver’s suburbs — places like North Vancouver, Burnaby, Coquitlam, Port Coquitlam, Surrey, and Langley — the real estate market has dialled back the drama when it comes to both frenzy and prices.
According to data from the Real Estate Board of Greater Vancouver (REBGV), prices began to cool in Vancouver’s suburbs in the past six months after reaching record-breaking highs since the onset of the pandemic.
“There has been a substantial change in the market in regards to everything from market sentiment, to listing prices and offer strategies, and the overall number of homes on the market,” says British Columbia (BC)-based realtor Alex Dunbar. “All of this has led to a more balanced market although we are still a ways from a buyer’s market. However, certain subareas are starting to get pretty close to those numbers in regards to sales-to-active listings ratio, which is the number we look at to give us this an indication of the type of market we’re in. This is determined by taking the current number of sales for a given period of time divided by the current new listings for a given period.”
Once a given, Dunbar says that suburban bidding wars are for the most part a thing of the past and that subjects have returned to almost all offers. “Buyers now hold the majority of the power and ability to negotiate,” says Dunbar. “Far fewer homes are being listed a week prior to taking offers at a price lower than the sellers are expecting to get and these days, most homes are being priced at or close to what sellers want right from the start and offers are being taken as they come. Buyers no longer want to compete and they have enough options out there that they can avoid these situations most of the time.”
Vancouver and Langley-based mortgage professional Alex McFadyen agrees that there’s been a shift in BC’s real estate market. “We are seeing less multiple offers and frenzy on properties, although with the right property and location, we are stilling seeing listings, there are a lot less of these conversations happening and certainly more financing conditions and subjects on most properties outside of the ‘hot’ properties,” says McFadyen.
Dunbar highlights that the most substantial price decreases have been in the most suburban cities in the lower mainland which conversely had the most drastic relative price increases. “For instance, places like Chilliwack and Abbotsford were up 97% and 83% respectively from the start of the pandemic (March 2020) until the peak in February 2022,” says Dunbar. “This is where we’ve seen the biggest slow down with it becoming less and less drastic and we head further west towards Vancouver.”
The Golden Ears Bridge, connecting Maple Ridge to Langley. Long exposure at night, reflecting into Fraser River. Beautiful British Columbia, Canada.
Dunbar says he’s also seeing a compression of the market based on property type. “What I mean by that is that the relative price comparisons between condos, townhomes and detached homes got extended to the point that it was becoming more and more unrealistic for homeowners to climb the property ladder and make that jump to the next property type with an emphasis on the gap between townhomes and detached homes,” says Dunbar. “However, we are now seeing the biggest declines in detached homes followed by townhomes and then condos. For context, in the Fraser Valley these numbers were a -13.7% change in price for detached, -10.7% for townhomes and -7.6% for condos.”
Additionally, Dunbar points to how prices in the valley (east of the Fraser River) have also closed the gap significantly when compared to those part of the Greater Vancouver Real Estate Board (west of the Fraser River). “So, what was once a more attractive option due to affordability, being able to get have more space, and the ability to work from home, are no longer as prominent — especially with other factors such as more people being asked to return to the office, at least on a part time basis,” says Dunbar. “With prices for pre-construction condos in places like Surrey hitting prices over $1200/sq ft and Langley close to $1100/sq ft, the numbers are making less and less sense when compared to those of Vancouver and the cities nearby.”
Naturally — as in other parts of the country — climbing interest rates have played a role in the cooling of BC’s market. McFadyen, however, says he hasn’t noticed a notable drop in mortgage-seeking clients. Not yet at least.
“Our applications are still very much in line with the same time last year, with a slight reduction in refinances and less ‘fringe’ inquiries; we’re seeing more “serious” applicants now,” says McFadyen. “So, in turn, the numbers are down slightly but perhaps only 5-10% — nowhere near as dramatic as being reported.”
With that said, McFadyen says that the next BOC (potential) increase will put a damper on lending, as it will most likely at that point start to impact qualification. “I would suggest a more balanced but less transaction heavy summer,” he says. “If interest rates to not increase by more than .75% I would anticipate a run up in the fall as more people are realizing the opportunities available to them in this more supply heavy market and as more home sellers decide NOT to sell with prices declining. This could equal a rising price environment by the end of the year. There are quite a few variables here though so we’ll see!”
As for the return to normalcy, it’s unlikely that Vancouver’s suburbs will lose their appeal once the pandemic and its remote work culture become a distant memory. According to data from Sotheby’s International Real Estate and the Mustel Group’s latest survey, nearly half of Vancouver’s Generation Z residents say they plan to buy their first home outside of a major city, with 44% reporting they plan to purchase their first property in a suburb.
In the meantime, Dunbar says summer will likely show more of the same situation in Vancouver’s suburbs.
“There is continued fear looming around more future interest rate hikes and many are sitting on the sidelines to see how things play out in the suburbs,” says Dunbar. “I think we’ve seen most of the ‘froth’ of the market come off the top already so I wouldn’t expect as drastic of price drops as we’ve seen these past 2-3 months from the peak, but there is going to be continued balancing/slight downward pressure as we get closer to a balanced market. I don’t think we’ve seen the full impact of the interest rate increases yet but that is something that each individual must weigh for themselves as future increases will also lead to decreased buying power. So, even if prices are to come down a little further, you may no longer be able to afford them.”
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
