The housing market thus far has showed no signs of slowing down, in fact it has only continued to accelerate. Despite the fact that Covid cases continue to spike and more transmissible variants of the virus seem to be popping up, we now seem to live in a world where this is the new normal, and people are no longer afraid to list their houses and have showings. By now, everyone knows that the detached homes market is very active, but so too now is the condo and townhome market. Just recently I met someone who purchased 10 pre sale construction condos in Langley for investment purposes in the last month.
Areas that have been slow in the condo market over the last year, such as downtown Vancouver are starting to heat up again, as the stay at home economy begins to roll over, and people start to take advantage of slightly stagnant prices in the downtown core are record low interest rates. Again as I have stated before, once the end of Covid is here we will start to see a mass migration into Canada (the federal government aims to have 400k immigrants per year) and big cities, such as Vancouver, tend to be where many new immigrants settle down, which will only continue to accelerate the price of condos and homes in our area.
Too Long, Didn't Read:
- March 2021 home sales up 126% compared to March 2020
- March 2021 apartment sales up $128% compared to March 2020
- The MLS Home Price Composite Index benchmark is showing a 9.4 per cent increase over March 2020 and a 3.6 per cent increase compared to February 2021
Before we get into the monthly stats for March though, let’s take a moment to see what is happening in and around Vancouver this month.
Vancouver Events This Month
Immagine Van Gogh
The very concept of Imagine Van Gogh is grandiose: visitors wander amongst giant projections of the artist’s paintings, swept away by every brushstroke, detail, painting medium and colour. Immersed in an extraordinary experience where all senses become fully awakened, viewers will be truly moved by such spectacular beauty. Visitors discover more than 200 of Van Gogh’s paintings, including his most famous works, painted between 1888 and 1890 in Provence, Arles and Auvers-sur-Oise.
Hastings Park Farmers Market
Every Sunday, 35+ farmers and producers, food and coffee trucks.
Poutine With A Purpose
Chefs are challenged to dream up and dish up a feature poutine for the week — from the traditional, to the creative, to the unusual! Every poutine sold during Poutine Week at any of the participating restaurants provides a simple, healthy meal to youth in need through our Mealshare charity partners. Poutine with purpose. Since 2013, Calgary, Vancouver and Victoria Poutine With a Purpose have sold over 35,000 poutines in support of Mealshare.
Market Forecast
Now for the monthly market report for March 2021:
March homes sales and new listings set records in Metro Vancouver, home buyer and seller activity reached unprecedented levels across Metro Vancouver in March. The Real Estate Board of Greater Vancouver reports that residential home sales in the region totalled 5,708 in March 2021, a 126.1 per cent increase from the 2,524 sales recorded in March 2020, and a 53.2 per cent increase from the 3,727 homes sold in February 2021. Last month’s sales were 72.2 per cent above the 10-year March sales average and is the highest monthly sales total ever recorded in the region.
In March, residents bought and listed homes across our region at levels not seen before. This surge in activity is increasing upward pressure on prices. We’re beginning to see double-digit price gains for single-family homes and townhomes over the last 12 months.
Demand was most pronounced in rural and suburban areas. Delta – South saw a 195.8 per cent increase in sales over 2020 – the largest increase in Metro Vancouver. This was followed by Whistler, which experienced a 194.7 per cent increase, and Squamish, which saw a 188.6 per cent increase in sales.
There were 8,287 detached, attached and apartment homes newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in March 2021. This represents an 86.8 per cent increase compared to the 4,436 homes listed in March 2020 and a 64.2 per cent increase compared to February 2021 when 5,048 homes were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 9,145, a 4.8 per cent decrease compared to March 2020 (9,606) and a 9.4 per cent increase compared to February 2021 (8,358). This is 18.6 per cent below the 10-year March total listings average. While we did see a record number of listings enter the market last month, the demand in today’s market isn’t allowing that new supply to accumulate. As a result, the overall inventory of homes for sale decreased compared to last year.
For all property types, the sales-to-active listings ratio for March 2021 is 62.4 per cent. By property type, the ratio is 52.9 per cent for detached homes, 79.9 per cent for townhomes, and 65.4 per cent for apartments.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months. Today’s activity can be attributed, in part, to an economy that’s showing signs of recovery, historically low interest rates, high demand for space, and increased household savings.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is $1,123,300. This represents a 9.4 per cent increase over March 2020 and a 3.6 per cent increase compared to February 2021.
Sales of detached homes in March 2021 reached 1,965, a 130.6 per cent increase from the 852 detached sales recorded in March 2020. The benchmark price for a detached home is $1,700,200. This represents a 17.9 per cent increase from March 2020 and a 4.9 per cent increase compared to February 2021.
Sales of apartment homes reached 2,697 in March 2021, a 128.8 per cent increase compared to the 1,179 sales in March 2020. The benchmark price of an apartment is $715,800. This represents a 3.7 per cent increase from March 2020 and a 2.6 per cent increase compared to February 2021.
Attached home sales in March 2021 totalled 1,046, a 112.2 per cent increase compared to the 493 sales in March 2020. The benchmark price of an attached home is $872,200. This represents a 10.4 per cent increase from March 2020 and a 3.9 per cent increase compared to February 2021.
