January home sales higher than normal. New listings decline; prices rising

Home sales across Metro Vancouver during the month of January remained higher than normal although declining somewhat from their blistering pace at the close of 2020. While winter months are not usually the busiest time for real estate activity, January’s sales were more than 52% higher than the same period one year ago, and 36% above the 10-year average. Prospective home buyers should expect this seasonally higher-than-normal demand will continue to push prices upwards as competition for home purchases increases. Price increases can be moderated with a sufficient number of new listings, but it is important to compare sales against monthly new listings to obtain an accurate picture of the upward price pressure.  January saw 4,480 new listings for all property types, an 86% increase over new listings in December 2020, and for historical comparison a 15.7% increase over new listings in January one year ago. However, current sales are continuing to outpace new listings. Even with January’s 22.8 % decline in sales from December 2020, the total supply of available homes in Metro Vancouver at the end of January was 8,306, a 2.7% decrease from December 2020. With this sales volume figure, the current inventory of listed homes can be seen as down 3.6% from one year ago.

The composite benchmark price for all residential properties in Metro Vancouver at the end of January was $1,056,600, a 0.9% increase from the preceding month. By historical comparison, the current composite benchmark price has increased by 91% over the past 10 years. The benchmark price for each of the three different property types with month-over-month increases for each type in a comparative sample of areas is shown below. It has been generally observed that during the Covid-19 period a significant shift to single detached homes purchases has occurred over several months. Some of this shift may be attributed to a life-style preference arising from the pandemic. However, historically low mortgage interest rates have also created an opportunity for some homeowners to move up to more spacious properties. Detached homes showed the biggest gains in sales volume this past January, close to 69% above one year ago. Condominiums showed the second largest year-over-year increase in sales at nearly 47% higher than January last year. Townhouse sales increased by almost 43% over one year ago. If you are contemplating the purchase of a Metro Vancouver home while interest rates remain low, I would encourage you to move soon as even relatively small price rises can increase your monthly payments considerably. For anyone thinking about listing their home for sale, you can expect it sell quickly with the current high demand. And if you are thinking about a more spacious home or moving up to a detached home from a condominium or townhouse, I will be able to advise you on an optimal listing price as well as assist in your purchase negotiations with a detailed market value comparison of neighboring homes. Please consult my selection of property benchmarks below. The benchmarks are clustered around the overall benchmark price for homes in Metro Vancouver at the end of January. However, keep in mind that benchmarks are average prices for comparable properties. There often exceptional prices for home sales when sellers are seeking to move quickly to another property. I am happy to provide you with more detailed information for a home in the area of your choice and within your financial budget. 

Detached homes

The benchmark price for a single-family detached home in Metro Vancouver at the end of January was $1,576,800, an increase of 1.4% from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $3,172,600 and Sunshine Coast at $715,900. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby South at $1,596,400, an increase of 1.1% from the preceding month; Richmond at $1,599,200, an increase of 0.9% from the preceding month; and Port Moody at $1,602,300, an increase of 2.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Vancouver East $1,546,700, an increase of 0.1% from the preceding month; Burnaby North at $1,546,200, an increase of 0.6% from the preceding month; and Burnaby East at $1,321,000, an increase of 0.7% from the preceding month. 

Townhouses

 

The benchmark price for a townhouse in Metro Vancouver at the end of January was $815,800, an increase of 1.2% from the preceding month. The extremities of this average were Vancouver West (not West Vancouver) at $1,142,100 and Maple Ridge at $561,800.  The three municipalities closest to the benchmark on the higher side of the average were: Richmond at $823,700, an increase of 0.8% from the preceding month; Vancouver East at $893,600, a decrease of 0.4% from the preceding month; and North Vancouver at $1,020,700, an increase of 1.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Burnaby South $802,100, an increase of 0.7% from the preceding month; Burnaby North at $759,000, an increase of 1.1% from the preceding month; and New Westminster at $747,500, an increase of 0.3% from the preceding month. (Squamish was excluded here as it is too far out for my clients.)

Condominiums

 

The benchmark price for a condominium in Metro Vancouver at the end of January was $680,800, an increase of 0.6% the from the preceding month. The extremities of this average were West Vancouver at $1,072,9100 and Maple Ridge at $373,500. The three municipalities closest to the benchmark on the higher side of the average were: Burnaby East at $730,400, a decrease of 1.5% from the preceding month; Vancouver West at $762,500, an increase of 0.4% from the preceding month; and West Vancouver at $1,072,900, a decrease of 2.1% from the preceding month. The three municipalities closest to the benchmark on the lower side of the average were: Port Moody at $659,200, an increase of 0.4% from the preceding month; Burnaby South at $657,500, an increase of 0.3% from the preceding month; and Burnaby North at $619,800, an increase of 0.3% from the preceding month. 

 

Let me help

 

One of the ways I work hard for my clients is to stay abreast of the most recent events in the real estate market. By watching price changes each month for all property types, I am able to give you the most up-to-date advice for both buying and selling. I am always happy to chat with you about any of your real estate questions. The is no obligation and no pressure. I am here to help. Please feel free to call me.