Is it 2015????  A look at the Vancouver Real Estate Market Conditions

The real estate statistics are out and it has been a very busy real estate market in January 2021. There were almost 2400 homes sales in the Vancouver region. This is up 52% from this time last year and is a 34% increase from the 10 year average.

I am going to share with you my insights on the Vancouver real estate market and provide you with information and data to help you understand what is happening in the market right now and where it could take us.

I have had several conversations with REALTORs this month discussing the market conditions and comparing it to 2015-2016. Many are saying the market is worse than in 2015 because the supply for homes is lower.

This demand is partially spurred by the COVID pandemic – people are working from home more, need more space and prefer to not live in an environment where one must leave through shared common property and elevators.

This is causing incredible pressure on the detached market. If we look at what has happened in the last week, there are several examples of homes that have sold in record time, for record prices.

Looking at the communities of Vancouver, Burnaby and Coquitlam – last week there were 10 homes that sold within a week, for over the asking price. DOM refers to Day on Market and the prices in green mean they have sold for over the asking price. The amount over ranges from as little as approx. $50,000 to as high as just over $300,000. A link to each of the details of the listings is provided here for you to review the details at your leisure.

Click Here to View Listings

There may be more supply coming to the market in the coming months for people who bought in 2015-2016. Their 5 year mortgage terms are coming up and they may be stretching to make their payments each month as see this as an opportunity for a change and reduce financial stress. Or course, these would be sellers will also likely become buyers and seeing their money not go as far, may decide to continue to stay in their current home.

Looking at the 10 year statistics is also an interesting exercise. 

From 2011 to 2015, there was minimal change to the prices of homes. Yet from 2015 to the beginning of 2018 the Vancouver real estate market saw unprecedented increases in sale prices. It first started with the detached market and then spilled over to the condo and townhouse market.

If we look at what is happening at the real estate market right now, there is a chance of history repeating itself. This could happen with an even greater impact than before., a real estate marketplace and information hub, did an internal analysis of data from stats Canada to try and indicate market potential. This is not an economic forecast. 

If Millennials and Gen Xers are to achieve similar home ownership rates as Baby Boomers, we are in for a lot of homes to be purchased in the next few years.

Many people question where the money for these homes will come from. A large number of these transactions are being funded by the bank of Mom and Dad for the down payment. Additionally, these households are dominated by the highest educated population in history where dual incomes are the norm, resulting in high income levels qualifying for substantial mortgages.

Not only that, interest rates are at an all time low. Many buyers are taking advantage of this. This is causing greater demand in the market.

Furthermore, the COVID pandemic has many people at home, spending less money and having access to federal COVID relief programs and funding. Some people are taking advantage of these conditions and making the move into real estate investment.

Online search activity is up. Looking at statistics, the number of search sessions is up 92% from the previous year.

Over the next few years, I am anticipating a very busy real estate market. If you are thinking about making a move, now may be an ideal time. Please reach out to me and we can discuss your goals.

Leslie McDonnell
RE/MAX Select Properties