The trend inflames competition, real estate industry association says
A consistent dearth of supply applied upward pressure on home prices across Metro Vancouver in January, according to the region’s real estate industry association.
Data from the Real Estate Board of Greater Vancouver showed that 4,170 homes were newly listed for sale last month, down by 6.9% annually. Active listings as of the end of January totalled 5,663 homes, representing a 31.8% decline from the same month last year.
“Our listing inventory … is less than half of what would be optimal to begin the year. As a result, hopeful home buyers have limited choice in the market today,” said Keith Stewart, economist at the REBGV. “This trend is causing fierce competition for a scarce number of homes for sale, which, in turn, increases prices.”
The benchmark residential price in Metro Vancouver went up by 18.5% year over year to reach $1.255 million, the REBGV said.
Read more: Vancouver market performance remains above historic levels
Sales activity slightly moderated by 4.4% annually for a total of 2,285 transactions in January. Despite the slowdown, last month’s sales were still 25.3% above the region’s 10-year January sales average.
“As we approach spring, we’ll keep a close eye on the impact of rising interest rates on buyers’ willingness to buy and on whether more home owners will opt to become sellers in what’s traditionally the busiest season of the year,” Stewart said. “With home prices reaching new highs in recent months, the need has never been greater for government to collaborate with the building community to expedite the creation of housing supply and provide more choice for those struggling to buy a home today.”
