Greater Vancouver Real Estate Market Overview
In the past 12 months, the average price (based on dollar volume of sales) of a Greater Vancouver home has increased in value by $93,529, which is far higher than the average household income. In the detached house sector, where sales exploded in January, the average year-over-year price increase is well into the six digits.
Dexter agents experienced this first hand during the last week of January as a North Burnaby detached house listing had a stunning amount of interest and showing requests. A significant number of multiple offers occurred, resulting in a sale that surpassed the $1.49 million list price. Each of these bidders were likely aware that, since January of 2020, the average detached house price in North Burnaby has increased by $283,456.
Multiple bids are being seen from West Vancouver and the Sunshine Coast to south of the Fraser River and in every property sector, from detached houses to condominium apartments. In Greater Vancouver during January, 53% of new listings sold, and the sales-to-listing ratio has surpassed 50% for the past seven months.
There is little relief coming in new construction. As 2021 started, only 241 detached houses and 230 townhouses had started construction across all of Metro Vancouver, according to Canada Mortgage and Housing Corporation data. Of the total 1,628 new apartment starts, 28% were rentals and many of the remaining condo apartments had been pre-sold months earlier.
- Average composite home price increase year-over-year in Greater Vancouver was 10.8%
- Biggest detached house price increase year-over-year was Bowen Island (up 30%)
- Biggest detached house price increase on the mainland was Port Coquitlam and Pitt Meadows (up 15.4%)
- Lowest benchmark condo price was Maple Ridge ($375,000)
Source: Real Estate Board of Greater Vancouver
Greater Vancouver Market Numbers
- Greater Vancouver: In January, 2,454 homes of all property types sold in Greater Vancouver. This compares to 1,602 in January 2020 and 1,120 in January of 2019 and a 28% increase from January of 2015, long considered the peak year for Greater Vancouver housing sales. Another telling stat: during the boom year of 2015, the benchmark January home price was $648,700. This January it was $1,056,600. Yes, we are into an unprecedented seller’s market.
- Listings continue to decline, however. Total active listings in January 2021 were 8,820, down from 9,307 in January 2020 and from 11,427 in January 2018. With the current sales-to-listing ratio pace, there is a mere four months of inventory in the entire Greater Vancouver housing market.
- Single Family Detached: Home sales were up 41.8% year-over-year, while new listings declined 0.4%. Sales of detached houses in January made up 30% of all sales compared to 27% in January 2020.
- Townhomes: Sales were up 42.8% year-over-year while new listings increased 16%. Townhouses represented 18% of sales, down from 20% a year earlier.
- Condominiums: Sales advanced 46.8% and new listings for condos increased by 27% year-over-year. Condo apartment sales made up 49% of total sales this January, compared to 51% in January 2020.
Fraser Valley MLS® HPI Benchmark Price Activity
- Single Family Detached: At $1,106,500, the Benchmark price for an FVREB single‐family detached home increased 2.5 per cent compared to December 2020 and increased 15.2 per cent compared to January 2020.
- Townhomes: At $580,800, the Benchmark price for an FVREB townhome increased 0.8 per cent compared to December 2020 and increased 7.2 per cent compared to January 2020.
- Condominiums: At $439,800, the Benchmark price for an FVREB apartment/condo increased 0.3 per cent compared to December 2020 and increased 4.4 per cent compared to January 2020.
Canadian Mortgage Rates have Fallen
Another factor influencing the market are the low mortgage rates. On February 8, 2021, ThinkMortgages.com provided the following update:
High Ratio Mortgage (less than 20% downpayment) with 25 Year Amortization:
- 5 year fixed rate: 1.69%. Which translates into $409 a month per $100K borrowed
- 5 year closed variable rate: 1.45%. Which translates into $398 a month per $100K borrowed
Conventional Mortgage (at least 20% downpayment) with 30 Year Amortization:
- 5 year fixed rate: 1.89%. Which translates into $364 a month per $100K borrowed
- 5 year closed variable rate: 1.45%. Which translates into $343 a month per $100K borrowed
Market Insights for the Future
What to expect for the 2021 housing market?
More of the same. With mortgage interest rates at 100-year-lows and home prices rising an average of nearly $8,000 per month, buyers and investors have awoken to an unprecedented buying opportunity.
What Does This Mean To You?
Depending on what you're buying or selling, there are many opportunities for both buyers and sellers in today's market.
Every neighbourhood and home is unique. So, as your real estate professionals, we're always here to help. We can fill you in on what’s happening in your local market, help you determine what type of homes you can purchase, provide the current value of your existing home and provide a clear idea of the properties currently available.
You don’t have to try to figure things out on your own! We're here to help.
Even if you’re just at the “thinking about it” stage, we recommend getting the information you need now. That way, you’ll be prepared to make the best decision when you’re ready.
So, How Are We Conducting Our Business to Keep Everyone Safe?
As real estate is deemed an essential service by the government, we're able to continue to help clients buy and sell real estate during Covid-19.
As always, the safety of our clients, community and all those involved, is our top priority.
Therefore, we’ve implemented safety precautions, viewing guidelines and are working virtually and electronically as much as possible. Masks and social distancing are the new norms.
For sellers, we continue to create floor plans, videos, 3D virtual tours and high-end marketing for our listings. This is extremely important to buyers and sellers in these times. It allows buyers to preview the property from the safety of their home and determine if a private showing is warranted. Therefore, sellers will have less people viewing their home in person, but the ones who do, are more serious about their home.
Please feel free to contact us if you have any questions.
View Detailed Market Statistical Packages
To view all the details of the current Greater Vancouver, Fraser Valley, Vancouver West and Vancouver East real estate market statistics and graphs, just click the desired buttons below to open a detailed PDF report.