According to the Real Estate Board of Greater Vancouver (REBGV), residential sales tumbled 13.1 per cent year-over-year in December, totalling 2,68 units. However, on a historical basis, home sales were 33.4 per cent above the 10-year average for the month of December.
When assessing the Vancouver real estate market over the course of last year, residential sales surged 42.2 per cent, totalling 43,999 units—an all-time high in the Vancouver real estate market.
Home prices were higher in December across all property types. The MLS® HPI composite benchmark price for detached homes advanced 22 per cent year-over-year to $1,910,200. The benchmark price for attached homes soared 22 per cent to $1,004,900, while apartments jumped 12.8 per cent to $761,800.
Home prices followed the sizzling sales activity in one of Canada’s largest cities. The MLS® HPI composite benchmark price for all residential properties in Vancouver climbed at an annualized rate of 17.3 per cent to $1,230,200.
While housing supply has improved, it has failed to keep up with record-high demand throughout the year.
Last year, home listings swelled nearly 15 per cent to 62,265 units, which was 11 per cent above the 10-year average. Active residential listings fell 38.7 per cent, to 5,236 units.
New housing construction was active in 2021, although some experts contend that it might not be enough. According to Canada Mortgage and Housing Corporation (CMHC), housing starts declined 43 per cent, totalling 1,568 units in November. However, in the first 11 months of last year, housing starts increased close to 18 per cent to 23,828 units.
Home has been a focus for residents throughout the pandemic. With low interest rates, increased household savings, more flexible work arrangements, and higher home prices than ever before, Metro Vancouverites, in record numbers, are assessing their housing needs and options.
We begin 2022 with just over 5,000 homes for sale across the region. This is the lowest level we’ve seen in more than 30 years. With demand at record levels, residents shouldn’t expect home price growth to relent until there’s a more adequate supply of housing available to purchase.