REBGV Economist Keith Stewart explains the latest home sale and listings trends in their latest video below. Keith looks at supply and demand trends and explains how they’re affecting the market in Vancouver BC. Watch the video or keep reading for the transcript below!
Vancouver Real Estate Q3 Housing Overview
After setting new sales and listings records, the market is finally settling down in the later half of 2021.
Monthly REBGV MLS Sales
Seasonally Adjusted Data
Seasonally adjusting data is really important when we’re talking about real estate markets, which are very seasonal. It’s well known that we have very different patterns in the spring and in the fall versus the summer and the winter. When we’re talking about sales or listings or the available inventory of housing, and to a lesser extent prices, we’re always going to be very careful that we’re talking about something being up and down. We’re not just talking about the typical patterns that we see that very few homes are being listed or sold within December and quite a few are happening within March and April.
When we say something’s up or down, we want to actually say it’s economically up or down versus just it’s following the patterns that we see year in and year out. And that’s what these bold lines here show you in this chart is the seasonally adjusted line taking away those effects. So when you see something that’s up, it’s truly higher than it was, accounting for the seasonal patterns that we always see every year.
How the COVID-19 Pandemic Affected the Market
And what you can see is that when the pandemic hit, we saw a complete shutdown of the market. Very few sales, very few listings were happening at that point. Things really didn’t start to pick up until May and into June, when things kind of returned to more typical levels. And then we hit a very strong fall going off before we saw these record peaks that we saw in both March and still pretty strong in April but started to come down at that point.
We basically saw sales and new listings both peaked in March, absolute records for REBGV. The increase in sales and new listings was pretty broad based across all types, as far as detached and attached, which is duplexes and townhomes and apartment units.
But we really saw the strength in terms on the pricing side, in terms of detached and attached. The market has been characterized by the cheaper the price per square foot within the region, the hotter the product type. That’s what we’ve really seen as far as what’s been moving and what sellers have been most reluctant to actually release or sell on the market.
Monthly Active Listings
Looking at what’s happening within active listings, which is the standing inventory at the end of each month by product type. You can see the inventory draws down across all product types. Detached right now is specifically quite low. There is variation between higher price markets, and lower price markets. Again, wherever we see the most affordability, that is the hottest product type. And that is where there’s been the most sales. And that’s also the fewest current listings sitting on the market.