Low housing inventory across Metro Vancouver resulted in decreased sales and increased prices during the first month of 2022.
According to the Real Estate Board of Greater Vancouver (REBGV), the region saw 2,285 residential home sales in January, a 15 per cent drop from the previous month and 4.4 per cent decrease from the 2,389 sales recorded in January 2021.
While last month’s sales were 25.3 per cent higher than the 10-year January sales average, reduced supply has resulted in a lack of options for prospective home buyers, putting upward pressure on prices.
Metro Vancouver had 4,170 new listings across all property types on its Multiple Listing Service (MLS) last month. While that represents a 114.4 per cent increase from December 2021, it’s also a 6.9 per cent decrease year-over-year.
A total of 5,663 homes are currently listed on the region’s MLS system, up 8.2 per cent from December but a 31.8 per cent decrease compared to January 2021 (8,306).
“Our listing inventory on MLS is less than half of what would be optimal to begin the year. As a result, hopeful home buyers have limited choice in the market today,” Keith Stewart, REBGV economist said. “This trend is causing fierce competition for a scarce number of homes for sale, which, in turn, increases prices.”
The benchmark price for all residential properties in Metro Vancouver reached $1,255,200 in January, an 18.5 per cent increase from January 2021 and a two per cent bump month-over-month.
Detached home prices keep hitting new heights, with a benchmark price of $1,953,000 representing a 2.2 increase from December and 22.7 per cent rise year-over-year.
Benchmark prices for attached homes and apartment properties saw month-over-month increases of 2.5 per cent and 1.8 per cent, respectively, hitting $1,029,500 and $775,7000.
“With home prices reaching new highs in recent months, the need has never been greater for government to collaborate with the building community to expedite the creation of housing supply and provide more choice for those struggling to buy a home today,” Stewart said.
Seller’s market conditions prevail in Metro Vancouver, with the 40.3 per cent sales-to-active listings ratio for all property types. The ratio is 28 per cent for detached homes, 51.6 per cent for townhomes, and 49.7 per cent for apartments.
“As we approach spring, we’ll keep a close eye on the impact of rising interest rates on buyers’ willingness to buy and on whether more home owners will opt to become sellers in what’s traditionally the busiest season of the year,” Stewart said.
