Just two weeks into March, and the local housing market is showing us that it hasn’t gotten wild just yet. A new report published by Dexter Realty indicates March could yield the highest prices we have ever seen in the Metro Vancouver housing market.
There was a significant increase in listings in February 2022, as well as there was a significant increase in home sales. We can expect March to be a “barn-burner”, the representative from Dexter Realty said.
When we look back at March of 2021, we also saw a high number of new listings. March 2021 was also the month we saw the highest sales. There was an all time high of 45,000 sales in that month alone.
Low Housing Supply
We are still seeing low supply of housing, as a matter of fact, some areas have extremely low supply. But we have seen some increases in new listings recently on the metro Vancouver market. Some markets, however, only have one month supply of homes. Markets with just a month of homes for sale include;
- Port Coquitlam
- Port Moody
- New Westminster
- Pitt Meadows
- Maple Ridge
- North Vancouver
Without a sudden increase in the available supply, the spring buying season will only continue to see higher prices. With low supply, you will also see multiple offers, which will just drive the prices up even more. The demand is still high, but the supply is just not scratching the surface when it comes to meeting the need.
Condo, Townhouse, Detached Home Sales
In metro Vancouver, February sales were dominated by condo apartment sales. This is due to the greater supply of these types of properties, with lower prices than the other property types available. Added to that was a high demand from investors.
Vacancy rates are now back to record lows. Investors are aware of this and aware of the need for rental housing. Governments in all cities have been able to supply this need adequately for a while now. But there is a predicted shortage looming over our heads currently. Added to that, the current benchmark prices are currently 15.9% higher than they were just a year ago.
The prices for detached homes dropped in February when compared to February of 2021. Factors causing the price drop include buyer resistance due to lack of choice, and benchmark prices at a record high of $2,044,800.
There are also not enough townhomes available for sale. As of February 2022, only 90 new townhouses were started in the Metro Vancouver area.
What Are Your Options?
It is a seller’s market, and there is no doubt about it. If you are a potential homeowner, be prepared for high prices and competition from other buyers. If you are looking for a detached home, your other option is to build your own home. Build with us, let us show you how!