In Metro Vancouver, housing demand continues to rise, with the upward trend we noted in previous months showing no sign of slowing. This is excellent news for sellers, especially if supply can’t keep up.
The latest report from the Real Estate Board of Greater Vancouver (REBGV) shows Metro Vancouver’s home sales and new listing activity continues to soar above historical averages. Last month’s home sales were 24.6% above the 10-year November sales average and were the second-highest total in this period.
“Home buyer demand has been at near record levels in our region since the summer,” noted Colette Gerber, REBGV Chair. “This is putting upward pressure on home prices, particularly in our detached and townhome markets.”
November’s Housing Market at a GlanceLast month, residential home sales in Metro Vancouver totalled 3,064, a 22.7% increase from November 2019 and a 16.9% decrease from October 2020.
There were 4,068 homes newly listed on the Multiple Listing Service® (MLS®) system in Metro Vancouver in November 2020. This number represents a 36.2% increase compared to the 2,987 homes listed in November 2019 and a 27% decrease compared to October 2020.
There are now 11,118 homes listed on Metro Vancouver’s MLS® system, a 3.2% increase compared to November 2019 and a 10.5% decrease compared to October 2020.
“The supply of homes for sale are a critical factor in understanding home price trends,” Gerber noted. “The total number of homes for sale in Metro Vancouver is lagging behind the pace of demand right now. This trend favours home sellers in today’s market.”
November’s sales-to-active-listings ratio for all property types is 27.6%. By property type, the ratio is 27.9% for detached homes, 40.1% for townhomes, and 23.9% for condos.
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. As demand outpaces supply, home prices go up—and right now, demand for townhomes and detached homes continues to climb.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,044,000. This benchmark price represents a 5.8% increase over November 2019 and a 0.1% decrease compared to October 2020.
Metro Vancouver Home Sales by Property TypeThere were 1,061 sales of detached homes in November 2020, a 28.6% increase compared to November 2019’s 825 sales. The current benchmark price for a detached house is $1,538,900. This price represents a 9.4% increase from November 2019 and a 1.1% increase compared to October 2020.
Townhouse sales in November 2020 totalled 632, a 40.1% increase compared to November 2019. The benchmark price of an attached home (or townhome) is now $814,800. This price represents a 5.6% increase over last year and a 0.2% increase compared to October 2020.
Finally, there were 1,371 condo sales in November 2020, a 12.2% increase compared to November 2019. An apartment home’s benchmark price is now $676,500. This price is a 3.4% increase from November 2019 and a 1% decrease from October 2020.