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Home prices in Metro Vancouver continue to inch higher as activity remains high and demand exceeds supply.
According to a monthly market report by the Real Estate Board of Greater Vancouver (REBGV), supply levels reached a three-year low in October as 4,049 residential properties hit the market, a 21.7 per cent decrease from September’s tally of 5,171. The numbers are also down 27.3 per cent from October 2020 listings (5,571).
In total, 8,034 homes are currently listed on the Metro Vancouver MLS, a 13 per cent decrease compared to September (9,236) and 35.3 per cent dip from October 2020 (12,416).
Meanwhile, residential home sales totalled 3,494 in October, representing an 11 per cent increase from 3,149 transactions in September. Year-over-year figures showed a 5.2 per cent drop from October 2020 (3,687) but home sales remained 22.4 per cent higher than the region’s 10-year October sales average.
REBGV economist Keith Stewart outlined the impact on home prices, noting “home sale activity continues to outpace what’s typical for this time of year and the pool of homes available for sale is in decline. This dynamic between supply and demand is causing home prices to continue to edge up across the region.”
Those words echoed Stewart’s early October reminder that “scarcity limits peoples’ purchasing options and ultimately adds upward pressure on home prices,” and the numbers are proof positive. The MLS Home Price Index composite benchmark price reached $1,199,400, up 1.1 per cent from September ($1,186,100) and 14.7 per cent from October 2020.
Detached, attached and apartment homes saw their average values rise 20.5 per cent, 18.5 per cent and 9.5 per cent yearly to $1,850,500, $975,000 and $746,400.
The sales-to-active listings ratio across all property types for October was 43.5 per cent, up from 34.1 per cent in September. Industry analysts typically see home prices increase when the sales-to-active listings ratio surpasses 20 per cent for a duration of several months.
“Rising fixed mortgage rates should eventually help ease demand, but for now sales remain strong and buyers with rate holds will remain motivated to find a property for the rest of the year,” said Stewart in the report.
Apartment homes reported total sales of 1,801 in October, representing an increase of 14.7 per cent compared to October 2020. Detached and attached properties sold at a rate of 1,090 and 603, respectively, down 18.4 per cent and 22.9 per cent year-over-year.
