REBGV Market Update For April 2021 – More Homes Being Sold, But More Supply Required To Meet Growing Demand
he April 2021 market report released by the Real Estate Board of Greater Vancouver (REBGV) reflected the underlying trend of the current real estate market where record-low interest rates, increasing household savings, a strengthening economy, and a continued focus on living space during the pandemic, are all factors that have been boosting demand, while rising values have been encouraging more sellers to list their homes.
“Our housing market has changed considerably from one year ago when COVID-19 concerns brought activity to a standstill.” Said Keith Stewart, an REBGV economist.
He added, “ This was followed by a well-documented spike in home buyer demand across the region. So far this spring, we’ve seen a corresponding supply response from home sellers. While homes are now being listed at record levels, more supply is needed to meet today’s demand and help market conditions achieve greater balance.”
There were 4,908 residential property sales in April. This represented a 342.6% increase from the 1,109 sales recorded in April 2020 and a 14% decrease from March 2021 when 5,708 homes were sold.
The number of detached properties sold was 1,655, 326.5% more than April 2020.
The number of apartments sold was 2,289, 355.1% more than April 2020.
The number of attached properties sold was 964, 342.4% more than April 2020.
April saw the highest listing total ever recorded in the region for the month of April, and a huge increase in new home listings when compared to the previous year. There were 7,938 newly listed detached, attached and apartment properties for sale on the Multiple Listing Service (MLS) in Metro Vancouver. This was 243.2% higher than the 2,313 new homes listed in April 2020, and a 4.2% decrease when compared to March 2021 when 8,287 homes were listed.
The total number of homes listed for sale in April was 10,245, a 9.1% increase compared to April 2020 when 9,389 homes were listed and a 12% increase compared to the 9,145 homes listed in March 2021.
This is a good indication of the supply and demand forces in the market. Downward pressure on home prices can occur when the ratio is below 12% for a sustained period, and there is upward pressure when the ratio is above 20% for a number of months.
For all property types, the ratio in April was 47.9%. When broken down by property types, the ratio was:
4% for detached homes
70% for townhomes
5% for condos
The MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,152,600 in April. This was 12% higher than April 2020 and 2.6% higher than March 2021.
Click here for a full report.
The real estate market is at unprecedented levels never seen before. If you are looking to buy or sell your home and take advantage of this window of opportunity, contact us by email or call us on 604 913 1000.