The key to the last month is SALES (demand) hit an all-time high. If you’ve been following my weekly updates, you’ll already know what the rest of the world is only figuring out now.
All across the Lower Mainland, sales hit an all-time record…and that held true for Vancouver as well. The 1,532 sales in March were 53.2% over the previous month and 101.3% year-over-year (and 45.6% over the 10-yr avg).
Meanhwhile, we also saw a record high of 2,475 new listings hit the market in the last month (42.5% above the 1,737 10-year avg). That was 66% over the previous month and 90.1% year-over-year.
Yet, the immense demand kept overall inventory levels low. Total active listings rose to 2,996 (6% BELOW the 10-yr avg).
A strong local economy, record-low interest rates, demand for space and increased household savings are driving current demand. The result? Prices are seeing immense upward pressure.
Notably, detached house prices are now in the double digits in terms of price increase over the last year (nearly 12%) East Vancouver townhouses were also up 7.7% in JUST THE LAST MONTH.
This amount of demand is quite literally unprecedented. The question of whether or not increasing supply will be picked up by buyers has obviously been answered…but where to from here?
There are some indications that interest rates (fixed rate) may begin to climb in the coming months. With increasing COVID numbers, that is yet to be seen…but so long as interest rates remain at or near record lows I don’t believe the heightened demand will abate.
The next few months are bound to be record-setting. Both in terms of sales as well as for prices. Vancouver Real Estate - Monthly Market Update - Infographic - March 2021