March home sales and new listings set records in Metro Vancouver!
March home sales and new listings set records in Metro Vancouver
Compared to previous years and months, March 2021 was the busiest month ever in Metro Vancouver’s real estate market. There were more new home listings and sales than the region had seen in the previous month or any other month before, with residential home sales totaling 5,708.
To put the figures into more perspective, sales just a month before, in February 2021, were about 53% less at 3,727, while those a year earlier, in March 2020, were approximately 126% less at 2,524. As a result, residential home sales in March 2021 were 72% more than the average in March for the last ten years.
According to the chair of the Real Estate Board of Greater Vancouver, Taylor Biggar, the surge in sales in March 2021 was unlike anything they had seen before. Due to the demand, the market experienced an upward price pressure resulting in double-digit price increases for single-family homes and townhomes.
The region’s rural and suburban areas of Squamish, Delta-South and Whistler say the highest growth in demand with an increase of approximately 188%, 195%, and 194%, respectively.
Metro Vancouver’s Multiple Listing Service® (MLS®) reported a record number of new listings in March 2021, with 8,287 units of attached, detached, and apartment homes. Compared to March 2020 and February 2021, the record number of listings increased by 86.8% and 64.2%, respectively.
What the Numbers Mean
Current figures put the number of listings on the service at 9,145 against 9,606 in March 2020. While that is 4.8% lower than the previous year, it’s 9.4% higher than the previous month of February, where there were 8,358 listings.
Still, as the chair of the REBGV noted, the new record listings haven’t caused a supply glut as the demand in the market has seen the inventory of homes for sale decrease significantly compared to 2020.
The ratio of sales-to-active listings across the board for March 2021 was 62.4%. However, by property type, the ratio for apartments, detached, and townhomes were 65.4%, 52.9%, and 79.9%, respectively.
Generally, analysts say downward pressure on home prices occurs when the sales-to-active listings ratio stays at 12% or lower for several months, while upward price pressure is experienced when the market sustains a ratio above 20% for an extended period.
Experts say that the current market activity results from market recovery, low-interest rates, increased household income and savings, and high demand for space.
Further analysis of the Home Price Index composite benchmark by the MLS reveals that the average price of residential property in Metro Vancouver is $1,123,300, a 9.4% and 3.6% increase over March 2020 and February 2021.
For a detached home, the composite benchmark price was $1,700,200, a 17.9% and 4.9% increase over March 2020 and February 2021, respectively. Similarly, the price for attached home sales in March 2021 stood at $872,200, representing a 10.4% and 3.9% growth compared to March 2020 and February 2021, respectively.
Compared to March 2020, the sales of detached, apartment, and attached homes in March 2021 increased by 130.6%, 128.8%, and 112.2%, respectively, setting a new record in Metro Vancouver.