The story continues to be heightened demand and lower supply...but really, it's all about the supply.
There were just 2,878 active listings last week. That's a significant drop from 3,064 the week before. The last time listings were this low was way back in Week 10 in the first week of March.
New listings came in at just 207. That's the lowest number we've seen in 2021 since Week 1!
The end of the year is not typically a very active period in the Vancouver real estate market.
As the holidays approach, and winter closes in, we usually see all activity slow. This year, however, appears to be bucking that trend.
Home buyer demand is well in excess of historical averages, while overall supply continues to shrink.
There were 1,026 Sales in the city in the month of November. That was +4.2% over the previous month and +22.9% over the previous year. But most significantly it was +34% over the 10-year average.
Total active listings fell to 3,105 (-12.1% m-to-m and -24.9% y-to-y). This was a significant -7% reduction from the 10-year average.
Interestingly, new listings were actually well above the historical trends. Up +29% over the 10-year average with 1,360 new listings in November (-6% m-to-m and +7.8% y-to-y). Seller's see an opportunity to sell with limited competition.
What this tells us is that both buyer's and sellers have significant confidence in the market right now. And while more listings are coming onto the market than normal at this time of year, it's just not enough to fulfill demand.
The imbalance between demand and supply continues to put upward pressure on home prices throughout Vancouver. That's why we saw big gains in prices in the hottest market segments.
Speaking of hot markets, overall we are in a very strong seller's market with just 2.91 months-of-inventory. East Van in general continues to be the strongest element of the market. What's "affordable" continues to see the most action.
While we SHOULD see activity levels decline through December...I expect heightened levels of activity to remain. All indications at this point are that the New Year will be extremely active and prices will continue to be pushed higher.
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