Vancouver real estate prices and sales up in January, inventory down
Vancouver real estate prices continue to rise despite a decline in home listing activity. The latest data from the Real Estate Board of Greater Vancouver (REBGV) stated that 1,571 homes were sold in January 2020, a 42.4-per-cent increase year-over-year. On a month-over-month basis, sales decreased by 22.1 per cent. Last month’s sales, based on the 10-year January sales average, were down 7.3 per cent.
“We’ve begun 2020 with a steady home buyer demand that tracks close to the region’s long-term average. Looking at supply, we’re seeing fewer homes listed for sale than is typical for this time of year,” REBGV President Ashley Smith commented in the real estate board of Greater Vancouver’s release earlier today. “As we approach the traditionally more active spring market, we’ll keep a close eye on supply to see if the number of homes being listed is keeping pace with demand.”
Despite the rise in real estate prices year-over-year, the benchmark price for all residential properties in Metro Vancouver has decreased 1.2 per-cent year over year, coming in at $1,008,700 in January 2020. The sales of detached homes reached 439, an increase of 29.5 per cent from January 2019 with the benchmark price for detached homes is $1,431,200. This number reflects a 1.7 per cent decrease year over year. The benchmark price for apartments is $663,200, based on the 814 homes that were sold in January 2020. This number reflects a 45.6 per cent increase in sales year over year, while the benchmark price shows a 1 per cent decrease from January 2019. Attached home sales in January 2020 came to 318, a 55.1 per cent increase year over year, while the benchmark price of an attached unit is $782,500, a 0.7 per cent decrease from January 2019.
The sales-to-active listings ratio for January 2020 is 18.2 per cent for all property types. Breaking this down into property types, the ratio is 11.6 per cent for detached homes, 22.6 per cent for townhomes, and 23.9 per cent for apartments. Analysts generally say that downward pressure on home prices occurs when the ratio drops below 12 per cent for an extended length of time. Home prices often see upward pressure when that ratio surpasses 20 per cent over several months.
In its 2020 Housing Market Outlook, RE/MAX calls for home prices in Vancouver East to rise by 8 per cent in 2020, to $1,120,313, while prices in Vancouver West are expected to rise by 4 per cent, to $2,187,363. This expectation is based on an increase in buyer confidence returning to the market, as well as continued population growth and price increases.