Low supply pushing Metro Vancouver home prices upwards at start of 2022

Feb 2 2022, 11:53 pm

Real Estate Board of Greater Vancouver’s (REBGV) first monthly report of 2022 indicates the number of home sales has fallen, but this was largely due to the limited available supply.

Home sales reached 2,285 units in January, representing a 4.4% drop from the 2,389 sales in January 2021, and a 15% decrease from the 2,688 sales in December 2021. The month’s sales were 25% below the 10-year January sales average.

Over the month, there were 4,170 homes newly listed for sale in January 2022, which is a 7% decrease from the 4,480 homes listed in January 2021, and a 114% increase compared to December 2021, when 1,945 homes were listed.

Currently, a total of 5,663 homes are listed for sale within REBGV’s jurisdiction — a 32% drop from the 8,306 units over the same month in 2021, but an 8.2% increase compared to the 5,236 units in December 2021.

“Our listing inventory on MLS is less than half of what would be optimal to begin the year. As a result, hopeful home buyers have limited options in the market today. This trend is causing fierce competition for a scarce number of homes for sale, which, in turn, increases prices,” said Keith Stewart, the economist for REBGV, while also noting that rising interest rates this year will have an impact on demand.

The sales-to-active-listings ratio across all property types in January 2022 was 40%, including 28% for detached homes, 52% for townhomes, and 50% for apartments. Economists state a downward pressure on home prices occurs when the ratio drops below 12% for a sustained period, while home prices typically go upwards when the ratio exceeds 20% for several months.

The benchmark price for all home types is now $1.255 million, representing an 18.5% increase of January 2021, and a 2% increase compared to December 2021.

Within Vancouver’s west side, the benchmark price is now $1.399 million, with detached homes at $3.445 million, townhomes at $1.312 million, and apartments at $650,000. Vancouver’s east side, in contrast, has a benchmark price of $1.256 million, with detached homes at $1.81 million, townhomes at $1.05 million, and apartments at $650,000.

REBGV’s jurisdiction entails Vancouver, Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Richmond, South Delta, Squamish, Sunshine Coast, West Vancouver, and Whistler. Other areas of Metro Vancouver — including Surrey, White Rock, North Delta, and Langley — are within the separate jurisdiction of the Fraser Valley Real Estate Board.

January 2022 home sales statistics: REBGV

  • Detached homes
    • Number of units sold: 622 (-15.9% over January 2021)
    • Active listings: 2,341
    • Benchmark price: $1,953,000 (+22.7% over January 2021; +2.2% over December 2021)
    • Average days on market: 44
  • Apartment homes
    • Number of units sold: 1,315 (+10% over January 2021)
    • Active listings: 2,647
    • Benchmark price: $775,700 (+14% over January 2021; +1.8% over December 2021)
    • Average days on market: 30
  • Townhouse sales
    • Number of units sold: 348 (-23.3% over January 2021)
    • Active listings: 675
    • Benchmark price: $1,029,500 (+24.3% over January 2021; +2.5% over December 2021)
    • Average days on market: 21

Kenneth ChanKenneth Chan

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