The aggregate price of a house in Vancouver is forecast to increase 9% to $1,262,600 in 2021, with two-storey home prices increasing 10% to $1,671,700, and the median price of a condo 3.5% to $684,300.
Those are the findings from a new report out today from Royal LePage, which found housing demand exceeded expectations in the second half of 2020. The supply of homes available for sale failed to keep pace, driving home prices higher and pushing unmet buyer demand into the new year.
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“I am confident we will continue to see prices rise next year. Vancouver has proven to be a rather resilient market, with high demand and quite low inventory,” said Randy Ryalls, managing broker, Royal LePage Sterling Realty, in a statement on the report.
“In March, we couldn’t have imagined this is where we’d be today, but despite public health concerns, consumer confidence remains high. With very attractive mortgage rates and the promise of a vaccine on the horizon, demand is likely to remain strong.”
Ryalls noted that the current market conditions create a tough situation for buyers, who are oftentimes competing for properties; something he expects is likely to continue through 2021.
“We are seeing multiple offers on almost every reasonably-priced detached listing. There simply isn’t enough inventory to meet the demand,” said Ryalls.
A “balanced” Vancouver market has about 15,000 active listings available,” he noted. “Right now, we’re sitting at roughly 10,000.”
If there is no “injection of inventory” by the end of January, “we will continue to see upward pressure on prices in the spring,” said Ryalls.
As such, “I expect a strong seller’s market in 2021.”
Ryalls added that while the condominium market is not as strained as the single-family detached sector, demand remains strong.
By comparison, the report found that the aggregate price of a home in Canada is set to rise 5.5% in 2021 to $746,100, with the median price of a two-storey detached house increasing 6% to $890,100, and the price of a condo increasing 2.25% to $522,700.