REBGV Market Update For January 2021 – Trend Continues From Last Year As Home Sales Activity Outpaced The Supply Of Homes.
The January 2021 stats released by the Real Estate Board of Greater Vancouver (REBGV) confirmed a continuation of the past few months, whereby home listings continue to decrease and homebuyer activity continues to remain above historical averages.
The imbalance between supply and demand is responsible for increased competition, multiple offers and an upward pressure on home prices. “Shifting housing needs during the pandemic and historically low interest rates have been key drivers of demand in our market over the last six months,” Colette Gerber, REBGV Chair said. “People who managed to enter the market a few years ago, and have seen their home values increase, are now looking to move up in the market to accommodate their changing needs.”
In January, Metro Vancouver recorded 2,389 residential home sales, which represented a 52.1% increase from the 1,571 sales recorded in January 2020, and a 22.8% decrease from the 3,093 homes sold in December 2020.
Detached Homes: 740 sold, 68.6% increase from 439 sales in January 2020.
Attached Homes: 454 sold, 42.8% increase from 318 sales in January 2020.
Apartment Homes: 1,195 sold, 46.8% increase from 814 sales in January 2020.
The number of newly listed homes for sale on the MLS in Metro Vancouver was 4,480 for January 2021. This represented a 15.7% increase compared to the 3,872 homes listed in January 2020.
The total number of listings for January 2021 on the MLS was 8,306, a 3.6% decrease compared to the 8,617 listed in January 2020 and a 2.7% decrease when compared to December 2020 (8,538).
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 was 28.8% in January 2021. When broken down by property types:
3% for detached homes
6% for townhomes
8% for condos
The MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver for January 2021 was $1,056,600.
This represents a 5.5% increase over January 2020 and a 0.9% increase compared to December 2020.
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