METRO VANCOUVER HOUSING UPDATE NOVEMBER 2021
With an expectation that home sales are going to continue to climb and reach an all-time record by the end of the year*, Metro Vancouver is still encountering a decline in the supply of housing throughout the region^.
November continued to see strong home buyer demand, well in excess of long-term averages. The Real Estate Board of Greater Vancouver (REBGV) reported that residential home sales in the region totalled 3,428 for the month – an 11.9% increase from the 3,064 recorded in the same month last year and a 1.9% decrease from the number of homes sold in the month prior (3,494).
Back in October we reported that home sales for the month were up 22.4% across all areas on the 10-year October sales average, but last month we saw an even larger shift, with an increase to 33.6% above November’s 10-year sales average.
It’s no surprise that a concern for buyers right now is the rise of property values across the Metro Vancouver market, a reflection on the current tight housing inventory. Keith Stewart, an economist from REBGV commented that, “We’ve had elevated home sale activity throughout 2021 despite persistently low levels of homes available for sale. With a new year around the corner, it’s critical that this supply crunch remains the focus for addressing the housing affordability challenges in our region”.
If you are a buyer in today’s market weighing up different areas and are interested to find out more about pricing throughout the region, get in touch with one of our expert Stilhavn REALTORS® and let them talk you through your best options.
November’s Housing Market at a Glance
For November, the Multiple Listing Service® (MLS®) featured 3,964 newly listed detached, attached and apartment properties in Metro Vancouver. This figure represents a 2.1% decrease compared to last month when 4,049 homes were listed and a 2.6% drop from a year prior, which saw 4,068 homes listed in November 2020.
Right now, the MLS® system across all Metro Vancouver areas has a total of 7,144 homes listed for sale – a 35.7% decrease compared to the 11,118 in November 2020 and down 11.1% from October this year. Stewart notes that the REBGV expects, “Home sale totals to end the year at or near an all-time record in our region”.
November’s Sales-to-Active Listings Ratio and Composite Benchmark Price
For all property types, the sales-to-active listings ratio for November was 48%. For each category, their ratios are broken down into the following:
Detached Homes – 33.8%
Townhomes – 74.3%
Apartments – 53.7%
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home price often experience upward pressure when it surpasses 20 per cent over several months.
Stewart goes on to say that “The imbalance between supply and demand, coupled with some buyers wanting to use rate holds on lower rate fixed-term mortgages, is keeping upward pressure on home prices in this traditionally quieter time of year for the market”.
For all residential properties in Metro Vancouver, The MLS® Home Price Index composite benchmark price is currently $1,211,200. This represents a 16% spike over November last year as well as a 1% rise from a month ago in October.
Metro Vancouver Home Sales in November by Property Type
987 detached homes were sold during the month of November, a 7% drop from 1,061 detached sales recorded in the same month last year. The benchmark price for a detached home is $1,870,000 – an increase of 20.8% from November 2020 and a 1.1% increase from October this year.
1,828 apartment homes found new owners in November, 33.3% more than in November 2020 (1,371). The benchmark price of an apartment home is $752,800. Compared to the same month last year, this is an 11.4% jump as well as a step up from October this year, which saw a 0.9% increase.
613 sales for attached homes was recorded in November, 3% less than the same month a year ago (632). The benchmark price of an attached home is $990,300, which is 20.2% more than November 2020 and 1.6% more than October this year.
Regardless of if you’re a buyer navigating today’s competitive property market, or you’re looking to sell while the market’s hot, our Stilhavn REALTORS® aren’t called ‘top-performing’ for nothing. They want to work with you to find the best possible outcome for you personally, whether that’s finding you the right house for the right price in the right area or finding you the right buyers that are all set to go and take over your home with ease.
We’re here to help you #findyourhavn, no matter the month, the year, or the property type.
*As quoted by Keith Stewart, economist at the Real Estate Board of Greater Vancouver
^Areas covered by the Real Estate Board of Greater Vancouver include: 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.