One month into 2021 Metro Vancouver’s housing market continues to follow the pattern set at the end of last year with home sale activity outpacing the supply of homes for sale.
A closer look shows REALTOR®’s registered 2,389 home sales on MLS® in January. That’s a +52.1% increase over this time last year and is +36.4% above the 10 year average for the month.
With home sale activity well above our historical average the supply of homes for sale isn’t able to keep pace. We saw 4,455 homes newly listed for sale on MLS® last month which is a +15.7% increase compared to last year, bringing the total number of homes listed for sale today in our region to 8,206. This is -3.6% below last year’s total.
This imbalance between supply and demand is causing increased competition amongst home buyers; more multiple offers and upward pressure on prices.
To understand the relationship between supply and demand we look to the Sales-to-Active Listings Ratio (SAR). When this ratio dips below 12% for a sustained period prices typically decline. When it surpasses 20% for a sustained period prices typically increase.
January ended with a ratio of 29%. This suggests a Seller’s Market. Demand is highest in the townhome market SAR: 38%, followed by condo’s SAR: 28% and detached homes SAR: 26% respectively.
The Benchmark Price for all housing types in Metro Vancouver is $1,056,600. This is up +5.5% from January 2021 and up +0.9% from December 2020.
Shifting house needs during the pandemic and historically low interest rates have been key drivers of demand in our market over the last six months. People who managed to enter the market a few years ago and have seen their home values increase are now looking to move up in the market to accommodate their changing needs.
Areas covered by the Real Estate Board of Greater Vancouver include: Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.