Nearing the end of 2021, Metro Vancouver continues to see high demand competing for limited housing supply, pushing the average price across all property types past the $1.2 million mark.
The Real Estate Board of Greater Vancouver (REBGV) reported a total of 3,428 home sales in November, a 1.9 per cent drop from the previous month and 11.9 per cent increase from the 3,064 sales recorded in November 2020.
Last month’s total was 33.6 per cent higher than the 10-year sales average for November.
“We expect home sale totals to end the year at or near an all-time record in our region,” said REBGV economist Keith Stewart in a statement.
A total of 3,964 units were listed for sale in November 2021, representing a drop of 2.1 per cent compared to the 4,049 homes listed in October and a 2.6 per cent decrease year-over-year.
The total number of homes currently listed for sale in Metro Vancouver is 7,144, an 11.1 per cent decrease from October’s tally (8,034) and a 35.7 per cent decrease from the end of November 2020, when the market had 11,118 active listings.
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“We’ve had elevated home sale activity throughout 2021 despite persistently low levels of homes available for sale,” Stewart added. “With a new year around the corner, it’s critical that this supply crunch remains the focus for addressing the housing affordability challenges in our region.”
The sales-to-active listings ratio across all property types for November was 48 per cent, with detached homes at 33.8 per cent, townhomes at 74.3 per cent, and apartments at 53.7 per cent.
Economists find that upward pressure on home prices occurs when the ratio surpasses 20 per cent over several months. Conversely, when the ratio dips below 12 per cent for a sustained period it creates downward pressure.
“The imbalance between supply and demand, coupled with some buyers wanting to use rate holds on lower rate fixed-term mortgages, is keeping upward pressure on home prices in this traditionally quieter time of year for the market,” Stewart noted.
The benchmark price for all property types in Metro Vancouver was $1.211 million in November, a one per cent increase from October 2021 and a 16 per cent increase over November 2020.
The benchmark price for detached homes increased 1.1 per cent from the previous, reaching $1.87 million after 987 sales in November. The sales figures marked a seven per cent decrease year-over-year.
Apartment sales totalled 1,828 last month, a 33.3 per cent increase compared to November 2020, raising the benchmark price 0.9 per cent from October to $752,800.