Happy New Year Everyone! I’ll keep this review short since the market will be all about what happens next.
Inventory has remained low, though in the grand scheme of things, inventory wasn’t at all time lows this past year despite feeling like it was – it was that was at an all time high. We will need to see a huge influx in inventory to curb the demand out there, and unfortunately I don’t see any inclination that we will see that needed increase in inventory. I have a handful of clients who will be listing their house for sale, but they will be buying as well, so we end up with a zero sum game. Many won’t sell until they buy, so the question becomes how long will it take them to buy?
Interest rates were expected to rise this year, though with the new strain of Covid leading to more restrictions, I don’t anticipate interest rates to rise as much or as quickly as we originally thought. With interest rates remaining low, you know there will be Buyers out there trying to take advantage of low rates given the increase in prices.
Multiple Offers are still common across all products and neighbourhoods, so you have to be willing to compete if you’re interesting in buying. There was a house in Burnaby that received 43 offers just after Christmas, if you can believe it, and it wasn’t priced obscenely low. Every now and then a property doesn’t receive any offers because it was priced too high, so if you can’t be competitive for some reason, look to these properties as your opportunity to submit a conditional offer.The market is going to be just as busy this coming year as it was last year, so be prepared to compete. Generally the earlier you buy in the year the better off you’ll be, knowing that you’ve secured your property while prices keep increasing for everyone else.
If you’re thinking about selling your property, give me a call to chat about value, pricing strategy and the sale process. There are plenty of details to chat about – including timing, value, staging and your potential purchase – so don’t hesitate to contact me if you’d like to get started kristi@realestatevancity.ca or 778-387-7371.
Onto the stats:
From the Real Estate Board:
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 43,999 in 2021, a 42.2 per cent increase from the 30,944 sales recorded in 2020, a 73.6 per cent increase from the 25,351 homes sold in 2019, and a four per cent increase over the previous all-time sales record of 42,326 set in 2015. Last year’s sales total was 33.4 per cent above the 10-year sales average.
Home listings on the Multiple Listing Service® (MLS®) in Metro Vancouver reached 62,265 in 2021. This is a 14.7 per cent increase compared to the 54,305 homes listed in 2020 and a 19.9 per cent increase compared to the 51,918 homes listed in 2019. Last year’s listings total was 11 per cent above the 10-year average.
There were 1,945 detached, attached and apartment properties newly listed for sale on the MLS® in Metro Vancouver in December 2021. This represents a 19.3 per cent decrease compared to the 2,409 homes listed in December 2020 and a 50.9 per cent decrease compared to November 2021 when 3,964 homes were listed.
For all property types, the sales-to-active listings ratio for December 2021 is 51.3 per cent. By property type, the ratio is 35.1 per cent for detached homes, 75.6 per cent for townhomes, and 60.8 per cent for apartments
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
Vancouver West Real Estate Stats up to and including December 2021
The Westside market is still not as busy as the Eastside market, but we’re still seeing increasing prices and plenty of activity. For HPI Price in Vancouver West – we’re up to $3,433,600 for detached houses (8.6% increase over the last 12 months and 0.58% increase over last month), $1,307,600 for townhouses (14.5% increase over the last 12 months), and $842,900 for condos (11% increase over the last 12 months and 1% over last month).
Inventory and the number of new listings dropped considerably in Vancouver West, though that was expected given the holidays. It will slowly increase as we get into the New Year, often starting with re-lists of older properties. All types of properties are showing a decrease in inventory compared to this time last year except for detached houses – there are 12% more listings compared to this time last year, which supports the thought that the Westside detached market has some opportunities for Buyers.
The sales to active ratio in Vancouver West has been really high: 16% for detached houses (this indicates a balanced market, further supporting the fact that there may be some good opportunities for Buyers), 31% for townhouses, 34% for 2 bedroom condos and 53% for 1 bedroom condos.
HPI Price for Vancouver West
*Unfortunately HPI Price can’t be any more specific than Condo/Townhouse/House*
Average Sales Price for Vancouver West
Median Percentage of Original Price for Vancouver West
New Listings for Vancouver West
Total Inventory for Vancouver West
Total Sales for Vancouver West
Sales to Active Ratio for Vancouver West
Median Days on Market for Vancouver West
East Vancouver Real Estate Stats up to and including December 2021
HPI Price in East Vancouver increased again this past month – we’re up to $1,770,000 for detached houses (14.5% increase over the last 12 months and 1.45% increase over last month), $1,085,000 for townhouses (21% increase over the last 12 months and 1.41% increase over last month), and $647,600 for condos (8.8% increase over the last 12 months and 1.25% increase over last month).
Inventory and the number of new listings dropped considerably in East Vancouver, though that was expected given the holidays. It will slowly increase as we get into the New Year, often starting with re-lists of older properties.
The sales to active ratio in East Van has been really high: 29% for houses, 71% for townhouses, 47% for 2 bedroom condos and 93% for 1 bedroom condos – some REALLY strong numbers for this time of year.
HPI Price for East Vancouver
*Unfortunately HPI Price can’t be any more specific than Condo/Townhouse/House*
Average Sales Price
Median Percentage of Original Price for East Vancouver
New Listings for East Vancouver
Total Inventory for East Vancouver
Total Sales for East Vancouver
Sales to Active Ratio for East Vancouver
Median Days on Market for East Vancouver
If you have any questions – regardless of how simple – don’t hesitate to send me an email or give me a call: kristi@realestatevancity.ca or 778-387-7371.
Now is a great time to check in with your mortgage broker about your existing pre-approval considering that fixed rates are going up. My preferred mortgage brokers have been great about detailing the difference between fixed and variable rates and how you may be better off going variable, so if you’re looking for a mortgage broker, please ask for a referral! Having a thoughtful, organized broker can make a big difference in the sale, and knowing where you stand from a financial perspective now can give you sometime to improve your file to be ready for the Spring market.
I hope you’re getting out to enjoy this Winter Paradise as we ease back into life after the holidays. All the best for a fantastic New Year. Here’s hoping this is the year life finally, consistently, gets back to normal.
If you have any questions as you start thinking about your real estate goals for this year, don’t hesitate to ask.