The Vancouver real estate market is undergoing notable shifts, with certain neighborhoods gaining prominence among buyers, particularly Millennials seeking family-friendly locales. The Agency Vancouver’s Managing Partners Kit Matkaluk and Hugh Cooper shed light on what’s influencing buyers in their region today—including emerging trends, legislative changes and market predictions—and their advice for navigating the area’s complexities.
What Vancouver neighborhoods are attracting buyers most right now?
The biggest housing moves are being made by Echo-Boomers—kids of the Baby Boomers, also known as Millennials. This generation is having families of their own. And they are looking for homes and communities to settle into. The hottest areas tend to be North Vancouver, East Vancouver, Port Moody and Squamish.
What do you think is attracting buyers to these areas?
These areas are not only somewhat price approachable (compared to West Van and Vancouver’s West side) but also offer lots of amenities and outdoor space. They also have a great community feel and plenty of other families around.
How have these areas evolved over the last few years since the pandemic, and what are buyers seeking in local luxury homes now?
Lots of development has come in. This brings in new commercial buildings which in turn brings in new restaurants, shops and cafes. The areas are also very transit-friendly. They’ve been surging in price and have remained resilient amidst all the interest rate hikes over the past two years.
What are some home amenities or features that you see buyers seek out right now?
Honestly, it’s the simple things. Homes with three bedrooms, two baths and up are a huge plus. A suite can also be a benefit for flexibility. Rec rooms downstairs are also popular.
In terms of design, walk-in closets and nice en-suite baths are important to buyers. They also are drawn to large kitchen islands and big backyards, and they look for spaces that can serve as an office or a home gym.
The population is constantly going up here. And with rates looking to fall in the coming months, we may be at the beginning of a huge upturn in demand and prices.
Who is interested in the Vancouver market right now? Any increase in buyers or renters from a certain region?
The population is constantly going up here. And with rates looking to fall in the coming months, we may be at the beginning of a huge upturn in demand and prices.
That said, since no more detached homes are being added to the market, supply is dwindling as homes are converted to townhomes and condos.
They also recently passed a bill that allows six units on single-family homes—an effort to keep up with immigration and density. People who are sitting on such lots are wanting a much higher price for their homes. However, buildings aren’t speculating with the high costs of borrowing and increased costs of development. In essence, this combination is hindering the detached home market and making entry-level homes even less affordable.
Are there any emerging developments in the region that you foresee buyers being drawn to?
In West Vancouver, we see Pierwell having great demand, and Lynn Creek in North Vancouver.
Do you have any stats or data about the market over the past year that are notable?
In 2021, we saw 44,000 home sales in Vancouver, in 2023, we saw 21,000. This market has been impacted substantially as the interest rates have climbed.
Is there any particular advice you have been giving buyers most often these days?
Now is the time to take the leap and move up in the market. Buy first, then sell. Own two homes in an appreciating market. Own zero homes in a declining market. Maximize your value on both ends. Not all areas perform this way so there are exceptions to this rule— but in general it holds true.
What are your predictions for real estate in Vancouver? What can we expect to see this year and into the future?
It depends on the price pocket and sub-areas. North Vancouver will likely remain active, historical low supply with consistent demand will lead to further price appreciation on the detached side.
In West Vancouver, we anticipate it will continue to remain a buyer’s market. With a higher price barrier to entry and less demand, we’d have to see a shift in buyer preferences to see a change in values.
We anticipate an influx of properties where land value is the driving factor, being listed above market value. This is due to the BC government rezoning all single-family homes to multi-family in the hopes of sparking more supply.
For more insight into current market trends and the world’s most dynamic real estate destinations, browse our other recent In the Knows: The Rise of Lake Town Real Estate in Tahoe & Beyond; Today’s Golf Course Home Market, Palm Beach to Palm Springs and Buying Real Estate in Panama, Visas & More.
