REBGV Presents the October 2021 Market Insights
In this video below, REBGV Economist Keith Stewart provides a summary of the October 2021 market insights. Watch the video or continue reading below for the summary!
While home sale activity remains elevated, the overall supply of homes for sale hit a three-year low in October. These factors are causing prices to edge upwards across the region. Let’s take a closer look.
Home Inventory on the MLS
Realtors registered nearly 3,500 home sales on the MLS in October. That’s down about 5% from this time last year. It is more than 22% above the 10 year average for the month. On the supply side, sellers newly listed over 4,000 homes on MLS last month. This is down over 27% compared to this time last year.
This brings the total number of homes currently listed for sale in our region to just over 8,000. This is the lowest total inventory we’ve seen since early 2018. This lack of homes for sale is keeping Metro Vancouver’s housing market in a strong seller’s market.
Sales-to-active listings ratio
To better understand how today’s conditions are affecting home values, we look at the sales to active listings ratio. This ratio gives us a picture of supply and demand forces at play in the market. When the ratio dips below 12% for a sustained period prices typically decline. Once it passes 20% for a sustained period prices typically increase. October ended with this ratio at 43.5%. For property type, we see that demand pressure continues to be strongest in the townhome market.
MLS Home Price Index
Looking at prices, the MLS HPI benchmark price for all housing types in Metro Vancouver is $1,199,000. This is up nearly 15% over this time last year. And it’s about 1% over the last month. As we go into the late days of fall, new listings are expected to drop off with seasonal patterns. Well, strong sales point to high numbers of buyers still looking for homes. As a result, multiple offers and price growth are more likely than they were over the summer.
Fixed Mortgage Rates Increase
October also saw fixed mortgage rates increase. So it’s especially important for buyers to understand the long-term financial obligations they are making when buying a home, which stays near historical low rates. For further housing market information, go to the market watch section of our website. For the Real Estate Board of Greater Vancouver, I’m Keith Stewart.
To see more detailed market reports of Vancouver West, East Vancouver, North Vancouver and West Vancouver visit our Vancouver Real Estate Market Updates page.