REBGV Market Update For January 2022

REBGV Market Update For January 2022 – The Limited Choice In The Market Is Responsible For Higher Prices

The January 2022 stats just recently released by the Real Estate Board of Greater Vancouver (REBGV) reported that the continuing low supply of homes was responsible for upward pressure on home prices.

Keith Stewart, REBGV Economist commented, “Our listing inventory on MLS is less than half of what would be optimal to begin the year. As a result, hopeful homebuyers have limited choice in the market today. This trend is causing fierce competition for a scarce number of homes for sale, which in turn, increases prices.”

Home Sales
In January, Metro Vancouver recorded 2,285 residential home sales, which represented a 4.4% decrease from the 2,389 sales recorded in January 2021, and a 15% decrease from the 2,688 homes sold in December 2021.

Detached Homes: 622 sold, 15.9% decrease from 740 sales in January 2021.
Attached Homes: 348 sold, 23.3% decrease from 454 sales in January 2021.
Apartment Homes: 1,315 sold, 10% increase from 1,195 sales in January 2021.

Home Listings
The number of newly listed homes for sale on the MLS in Metro Vancouver was 4,170 for January 2022. This represented a 6.9% decrease compared to the 4,480 homes listed in January 2021 and a 114.4% increase compared to December 2021 when 1,945 homes were listed.

The total number of listings for January 2022 on the MLS was 5,663, a 31.8% decrease compared to the 8,306 listed in January 2021 and a 8.2% increase when compared to December 2021 (5,236).

Sales-To-Active-Listings Ratio
This is a good indication of the supply and demand forces in the market. Downward pressure on home prices can occur when the ratio is below 12% for a sustained period, and there is upward pressure when the ratio is above 20% for a number of months.

For all property types, the ratio was 40.3% in January 2022. When broken down by property types:
– 28% for detached homes
– 51.6% for townhomes
– 49.7% for condos

Home Prices
The MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver for January 2022 was $1,255,200.

This represents a 18.5% increase over January 2021 and a 2% increase compared to December 2021. According to Brendon Ogmundson, chief economist for the BC Real Estate Association, prospective homebuyers province wide are up against a lack of inventory, which will probably drive prices up through all of 2022.

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Ready to jump into the market? Whether you are looking to buy, sell, or learn more about the market changes, reach out to our team of real estate advisors today! We’ll help you make the right move! Contact us by email or call us on 604 913 1888.