Vancouver Real Estate December 2020: Low Inventory

Vancouver Real Estate December 2020: Low Inventory

Vancouver Real Estate for December 2020 was 2.8 per cent below the region’s 10-year sales average. Of course, with the rise of the pandemic, many markets and economic changes took place.

“When the pandemic began in March, the housing market came to a near standstill. We knew, however, that shelter needs don’t go away in times of crisis, they intensify. The real estate community worked closely with our regulatory bodies and public health officials in the spring to ensure appropriate precautions and protocols were implemented so BC REALTORS® could help residents safely meet their housing needs.”

Colette Gerber, Real Estate Board of Greater Vancouver Chair

In 2020, the Multiple Listing Service® (MLS®) in Metro Vancouver reached 54,305 home listings. Comparing the 2020 home listings total to 2019 and 2018, there is an increase from both years. A 4.6 per cent and 1.3 per cent increase, respectively. 2019 had a total of 51,918 homes listed. 2018 there were 53,614 listings.

When comparing last year’s total listings to the to region’s decade-long average, the numbers show a 2.7 per cent decline.

Even with the shift in the COVID-19 environment for real estate, both the local home buyer demand and seller supply was able to return to its steady pace for summer, fall, and winter.

“Shifting housing needs and low interest rates were key drivers of this activity in 2020. Looking ahead, the supply of homes for sale will be a critical factor in determining home price trends in 2021.”

Colette Gerber, Real Estate Board of Greater Vancouver Chair

The year 2020 ends with a total of $1,047,400 for MLS® HPI composite benchmark price for all residential properties in Metro Vancouver. In comparison to December 2019, it reveals a 5.4 per cent increase. Townhomes saw a similar increase from benchmark prices compared last year; at 4.9 per cent. While apartments saw the smallest increase at 2.6 per cent, detached homes revealed the largest increase in benchmark price at an increase of 10.2 per cent.

December Summary

REBGV reports that regional residential home sales totaled 3,093, depicting a 53.4 per cent increase when compared to sales total in December 2019, which amounted to 2,016. In comparison to November 2020, where the total of homes sold was 3,064, there is an increase of 0.9 per cent.

December continues to be record high

Last month in November, the sales were 57.7 per cent above the decade long December sales average. It also happens to be the highest total for the month on record.

Gerber states that “Robust December sales outpaced long-term averages in what’s traditionally the quietest month of the year in real estate. This was part of an unusual seasonal pattern the market followed last year, which can be attributed in large part to the pandemic,”

MLS® in Metro Vancouver reported a total of 2,409 detached, attached, and apartment properties newly listed for sale in December 2020. This signifies a 51.7 per cent increase when compared to last year, with 1,588 homes listed in December 2019. When compared to the 4,068 listed homes in November 2020, it shows a 40.8 per cent decrease.

Home Listings

Currently, the total number of homes listed for sale through the MLS® system in Metro Vancouver is 8,538. This results in a 0.8 per cent decrease compared to December 2019, with 8,603 homes listed. This also shows a 23.2 per cent decrease compared to November 2020, with 11,118 homes listed.

The sales-to-active listings ratio for December 2020 is 36.2 per cent for all property types. When we look specifically into each property type, the detached homes ratio is 35.2 per cent, 50.4 per cent for townhomes, and 33.1 per cent for apartments.

Typically, analysts agree that a downward pressure on home prices are occurring when the ratio falls below 12 per cent for an elongated time, and upward pressure on home prices can be experienced when it reaches and surpasses 20 per cent consistently over the course of a few months.

Detached Homes

Detached home sales in December 2020 reached 1,026. This illustrates a 71.3 per cent increase from recorded sales of 599 in December 2019. $ 1,554,600 is the benchmark price for detached homes. This shows a 10.2 per cent increase when compared to December 2019. And a one per cent increase when compared to November 2020.

Apartments

In December 2020, apartment sales reached 1,474. This is a 40 per cent increase when compared to the 1,053 sales from last year. Apartment property benchmark price is $676,500. A 2.6 per cent increase is evident from December 2019, and there is no change when compared to November 2020.

Attached Homes

The attached home sales totalled 593 in December 2020. This total is a 62.9 per cent increase in contrast with the 364 sales in December 2019. Attached homes have the benchmark price of $813,900. This represents an increase of 4.9 per cent increase from December 2019 and a 0.1 per cent decrease in comparison with November 2020.

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See REBGV’s December 2020 statistics here.