Housing demand in Metro Vancouver continues to outpace historical averages with November sales eclipsing 3,000 for the first time since 2015.
REALTOR®’s registered 3,064 homes sales on the MLS in November. That’s an increase of +23% over this time last year and is 25% above the 10 year for the month. On the listing side we saw 4,068 homes new listed for sale in November which is a +36% increase compared to last year and is 22% above our 10 year average for the month. This brings the total number of homes in our region to 11,118. This is +3% above November 2019 total.
The supply of homes are a critical factor in understanding home price trends. Today’s trends tell us that the supply of homes for sale in Metro Vancouver is lagging behind the pace of demand. To better understand this balance between supply and demand we can look to the sales-to-active listings ratio. This balance is what determines price fluctuations. When this ratio dips below <12% persisting for a sustained period prices typically decline. If it surpasses >20% for a sustained period prices typically increase. We call this a Seller’s Market. Right now this ratio is 28%. By property type we see a continuing trend of demand concentrated in the townhome and single family (detached home) markets.
The Benchmark Price (HPI) for all housing types in Metro Vancouver is $1,044,000 (November 2020). This is up +6% over this time last year and is -0.1% decline over last month (October 2020).
While demand remains elevated across the region we are seeing home buyer activity particularly focused more in remote areas like the Sunshine Coast, Squamish and the Gulf Islands. The rise from work home arrangements and physically distancing policies is causing some home buyers to opt for less densified areas to satisfy a more at-home oriented lifestyle!