Written by Alan Kelly, Bōde’s Chief Economist
Vancouver’s real estate market continues to be extremely hot for sellers, with home prices continuing to increase going into February. This means it’s a great time for those thinking of selling, especially if you are considering downsizing or moving to a different market where prices are lower.
When you are thinking of buying or selling your home in Vancouver, it is important to understand what is happening in the housing market. Obviously, there are many important factors to consider (what kind of home you have, what community etc.), so it’s important to look specifically at what the market is doing in your local area.
Bōde makes buying and selling your home a streamlined process offering significant time and cost savings along the way.
We are also here to make sure you have the information you need to make the decisions that are right for YOU!
What’s happening in the Vancouver real estate market as of February 2022?
Let’s start with a Macroeconomics view
To understand what’s happening in the real estate market you have to look at supply and demand.
The best proxies for supply and demand are:
Supply
- New supply: New Listings (i.e. the number of homes recently listed for sale)
- Total supply: Inventory (i.e. the total number of homes listed for sale)
Demand
- Sales (i.e. the number of homes recently sold)
Supply & Demand
- Months of Supply (i.e. the number of months it would take to sell all current inventory at the current rate of sale)
These metrics are the best indicators of the health of the real estate market. Let’s look at what they show us.
Vancouver continues to see demand outpace new supply in the aftermath of the COVID-19 outbreak.
New listings in January were down 2% while sales were up 33% vs. the average of the previous 4 years. Sales have been on a very strong trend since July 2020.
Because of strong sales and relatively fewer new listings, there are far fewer homes for sale right now than there would typically be for this time of year. Inventory is down 33% vs the average of the last 4 years.
The combination of very low supply and high demand has kept ‘months of supply’ low at 2.5 months which is down 56% vs the previous 3 years.
Less inventory & fewer months of supply makes conditions more favourable for sellers, while more inventory and higher months of supply is more favourable for buyers.
Overall, Vancouver prices have been increasing quickly in 2021, ending a relatively flat period between mid 2018 and the end of 2020. After levelling off in mid 2021, they have started to increase again.
What does this mean for sellers?
Right now supply is low relative to previous years, and demand is high which means it is a good time to sell your home. Sellers who price their home well will be able to sell quickly. However, your specific property value will be determined by market forces both within your community and against similar active listings. To find out what supply and demand look like for your specific community, click here.
What does this mean for buyers?
There are currently fewer homes for sale than there have been in previous years. This means active buyers need to move fast to beat other buyers to available listings. One way you can move faster is by booking viewings directly through Bōde, so you don’t have to wait for a realtor to schedule your viewings or write your offer.
Market conditions vary substantially by property type, community and price range
Above, we’ve looked at the overall market for Vancouver, but different segments are performing very differently. Let’s look at a few examples.
Sales for detached homes were up 24% in January vs. previous years, while new listings were down 19%.
Detached homes have sold very well since the start of the COVID pandemic as buyers look for more space.
Detached prices have been increasing quickly for much of the past 2.5 years, recently setting new record highs each month.
Apartments:
New listings of apartments were up 16% in January compared the average of the previous 4 years, while sales were up 47%.
Apartment prices have generally been increasing quickly for most of the past year. Recent months have continued that trend.
New listings of attached homes were down 14% while sales were up 7% in January (compared to previous years).
Prices for attached homes have been increasing quickly for the past year setting new record highs each month.
In general, you’re in a better position if you’re selling a home right now relative to buying, due to less supply and greater demand.
However, what really matters is what’s happening in your specific local property market. There are some communities and price bands where homes are performing better/worse.
It’s critical to understand the dynamics in your local property market
To understand your local property market you need to look at your local data. Head over to Bōde’s new and improved Market Data dashboard, the only place where you can see all the data yourself, including being able to filter on community, property type, and price range to see exactly what’s happening where you live.
You can also see the sold price of any home that has sold in the last 2 years using Bode’s Sold Data page.
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