In the first month of 2021, Metro Vancouver’s housing market continued the pattern set at the end of last year with home sale activity outpacing the supply of homes listed for sale.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,389 in January 2021, a 52.1% increase from the 1,571 sales recorded in January 2020, and a 22.8% decrease from the 3,093 homes sold in December 2020.
Last month’s sales were 36.4% above the 10-year January sales average.
“With home sale activity well above our January average, the supply of homes for sale isn’t able to keep pace,” Colette Gerber, REBGV Chair said. “This is causing increased competition amongst home buyers and upward pressure on prices.”
There were 4,480 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in January 2021. This represents a 15.7% increase compared to the 3,872 homes listed in January 2020 and an 86% increase compared to December 2020 when 2,409 homes were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 8,306, a 3.6% decrease compared to January 2020 (8,617) and a 2.7% decrease compared to December 2020 (8,538).
For all property types, the sales-to-active listings ratio for January 2021 is 28.8%. By property type, the ratio is 26.3% for detached homes, 37.6% for townhomes, and 27.8% for apartments.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.
“Shifting housing needs during the pandemic and historically low-interest rates have been key drivers of demand in our market over the last six months,” Gerber said. “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.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,056,600. This represents a 5.5% increase compared to January 2020 and a 0.9% increase compared to December 2020.
Sales of detached homes in January 2021 reached 740, a 68.6% increase from the 439 detached sales recorded in January 2020. The benchmark price of a detached home is $1,576,800. This represents a 10.8% increase from January 2020 and a 1.4% increase compared to December 2020.
Sales of apartment homes reached 1,195 in January 2021, a 46.8% increase compared to the 814 sales in January 2020. The benchmark price of an apartment home is $680,800. This represents a 2.2% increase from January 2020 and a 0.6% increase compared to December 2020.
Attached home sales in January 2021 totalled 454, a 42.8% increase compared to the 318 sales in January 2020. The benchmark price of an attached home is $815,800. This represents a 4.3% increase from January 2020 and a 0.2% increase compared to December 2020.