So far, much of 2021 has been shaped by the changes brought on by the ongoing COVID-19 pandemic. Still, Metro Vancouver’s housing market remains robust, with February 2021’s market report showing increasing buyer demand as we head into March.
The latest report from the Real Estate Board of Greater Vancouver (REBGV) shows increased home sale activity as demand continues to outpace supply. With work from home becoming the new normal, buyers are looking to expand from 1-bedroom to 2-bedroom houses to accommodate a home office or a study room for their children.
“Metro Vancouver’s housing market is experiencing seller’s market conditions. The supply of listings for sale isn’t keeping up with the demand we’re seeing,” noted Colette Gerber, REBGV Chair. “Competition amongst home buyers is causing upward pressure on home prices.”
February’s Housing Market At A Glance
REBGV reports show that residential home sales in the region totalled 3,727 in February 2021, a 56% increase from the 2,389 homes sold in January 2021 and a 73.3%increase from the 2,150 sales recorded in February 2020.
There were 5,048 homes newly listed on the Multiple Listing Service® (MLS®) system in Metro Vancouver in February 2021. This number represents a 26.1% increase compared to February 2020 and a 12.7% increase over January 2021.
There are now 8,358 homes listed on Metro Vancouver’s MLS® system, a 9.1% decrease compared to February 2020 and a 0.6% increase compared to January 2021. The number of homes listed is 21.2% below the February 10-year average for new listings.
February’s Sales-to-Active-Listings Ratio and Composite Benchmark Price
For all property types, the sales-to-active listings ratio for February 2021 is 44.6%. The breakdown is as follows:
Detached homes – 41.8%
Townhomes – 61.8%
Apartments – 41.7%
Analysts generally expect home prices to dip when the ratio falls below 12% for a sustained period. Home prices often rise when the sales-to-active-listings ratio goes above 20% over several months.
“Low-interest rates remain a key driver in today’s market. We’re seeing steady numbers of first-time homebuyers and move-up buyers entering the market,” Gerber said.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,084,000. This represents a 6.8% increase over February 2020 and a 2.6% increase compared to January 2021.
Metro Vancouver Home Sales by Property Type
There were 1,231 sales of detached homes in February 2021, a 79.7% increase over February 2020. The current benchmark price for a detached house is $1,621,200. This price represents a 13.7% increase from February 2020 and a 2.8% increase over the last month.
Attached or townhouse sales in February 2021 totalled 737, an 82.4% increase compared to February 2020. The benchmark price of an attached home is now $839,800. This price represents a 7.2% increase over last year and a 2.9% increase compared to January 2021.
There were 1,759 apartment home sales in February 2021, a 65.8% increase compared to February 2020. An apartment home’s benchmark price is now $697,500, a 2.5% increase over last year and a 2.5% increase compared to January 2021.
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