A key takeaway In the August 2021 market report released by the Real Estate Board of Greater Vancouver (REBGV), was the slowing down of home sales from the frenzied pace witnessed earlier this year, and the fact that prices are continuing to rise.
The supply of homes for sale in the market has steadily declined since June.
According to Keith Stewart, REBGV economist, “August was busier than expected, and listing activity isn’t keeping up with the pace of demand. This is leaving the market under supplied.” He further added that, “Housing supply is the biggest factor impacting the market right now. To help relieve pressure on prices and improve people’s home buying options, the market needs a more abundant supply of homes for sale.”
We are in an election month and Stewart lamented, “..housing affordability has been a key issue in the federal election. We encourage the political parties to focus on policy solutions that will help streamline the creation of more diverse housing options for hopeful home buyers today and into the future.”
There were 3,152 residential property sales registered in August 2021 for the region. The same period last year registered 3,047 sales and July 2021 registered 3,326 sales.
– The number of detached properties sold was 945, a 13.7% decrease from the 1,095 homes sold in August 2020.
– The number of apartments sold was 1,631, a 22.4% increase from the 1,332 apartments sold in August 2020.
– The number of attached properties sold was 576, a 7.1% decrease from the 620 sales in August 2020.
In August, there were 4,032 new listings of detached, attached and apartment properties added to the Multiple Listing Service (MLS) in Metro Vancouver.
This was a 30.6% decrease compared to the 5,813 homes listed in August 2020, and a 7.9% decrease compared to July 2021 when 4,377 homes were listed.
The total number of homes listed for sale on the MLS® system in Metro Vancouver was 9,005, a 29.7% decrease compared to August 2020 (12,803) and an 8.6 % decrease compared to July 2021 (9,850). It seems that the housing supply has become one of the biggest issues facing the market today.
This ratio gives a better understanding of the relationship between supply and demand in the market. Downward pressure on home prices can occur when the ratio dips below 12% for a sustained period, and home prices can experience upward pressure when the ratio is above 20% for sustained periods.
For all property types, the ratio in August was 35%. When broken down by property types, the ratio was:
- 3% for detached homes.
- 8 % for townhomes.
- 2% for condominiums.
In August, the MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,176,600. This was 13.2% higher than August 2020 and a 0.1% increase compared to July 2021.
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The real estate landscape in Vancouver is changing dramatically – houses are getting harder to find due to the lack of inventory. If you are buying or selling a home, you need to get in touch with an experienced real estate company such as ours to navigate this market. Contact us by email or call us on 604 913 1000.