Demand for Homes Outpaces Supply in Greater Vancouver as Prices Rise

Article content

Demand for homes in the Vancouver metropolitan area continues to outpace supply, which has fallen to a three-year low, the region’s real estate board said.

Article content

the Greater Vancouver Real Estate Board reported 3,494 home sales in October, about 22 percent higher than the month’s 10-year historical average.

“Home sales activity continues to outperform what is typical for this time of year and the pool of homes available for sale is in decline,” board economist Keith Stewart said in a statement Tuesday. “This dynamic between supply and demand is causing home prices to continue to rise throughout the region.”

Metro Vancouver remains firmly in seller’s market territory, but many homeowners seem disinterested in listing their homes.

Just over 4,000 houses, condos and townhomes went up for sale in October, down 27% from last year.

Stewart said higher fixed mortgage rates should help ease demand, but he expects sales to remain strong for now as buyers with retained mortgage rates look for properties for the rest of the year.

Article content

The sales-to-active listing ratio for October is 43.5 percent for all property types, the board said. For single-family homes, the proportion is 33.6 percent; for semi-detached houses, 64.4%; and for apartments, 46.7 percent.

In general, analysts say that upward pressure on home prices comes when the ratio stays above 20% for several months.

Home prices in the region were up one percent compared to last month.

The reference price for all home types in Metro Vancouver currently stands at $ 1,199,400, with freestanding homes seeing the largest year-over-year increase.

The largest gains in home equity were recorded in Maple Ridge (33 percent), Whistler (32 percent) and Pitt Meadows (30 percent).

The reference price of a single-family home in the region is $ 1,850,500, 20% more than in the same period last year.

Article content

For townhomes, the reference price is $ 975,000, an increase of 18%, while the reference price for condos is $ 746,400, an increase of nine percent.

The Greater Vancouver Real Estate Board covers Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.

It’s a similar situation for the Fraser Valley Real Estate Board, which reports above-average sales for October, when 1,938 properties changed hands, and below-average listings that are pushing home prices higher.

“This is a very challenging time, especially for buyers,” said Board Chairman Larry Anderson. “I empathize with clients who have been trying to buy a home for over a year with no success after multiple attempts.”

Article content

The board, which represents real estate agents in Abbotsford, Langley, Mission, North Delta, Surrey and White Rock, said it had 2,188 properties listed in October, 29 percent less than last year.

Overall, active inventory stands at 3,447, almost half of last year’s figures.

The reference price for a single-family home in the area is $ 1,396,700, which is a 33 percent increase compared to last year. Townhomes and condos also increased in value by 27 percent and 18 percent, respectively.

[email protected]

twitter.com/cherylchan

Start your day with a summary of BC-focused news and views delivered right to your inbox at 7am, Monday through Friday, by signing up for our Sunrise newsletter here.

CLICK HERE to report a typo.

Is there more to this story? We would like to hear from you about this or any other story that you think we should know about. Send an email to [email protected].