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Greater Vancouver’s Housing Market Shows Signs of Re-Balancing


Under Market Updates

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March 30th, 2022

Vancouver’s quota of home sales and new listings so far this month hasn’t been as high as last year, an indication that there may be some rebalancing in the works.

In a mid-month sales and listings email report for Greater Vancouver, Kevin Skipworth, partner, broker and chief economist at Dexter Realty, said that March has “not quite been the fervor of sales and listings,” compared to the all-time highs recorded during the same month a year earlier.

“Last year were all time highs for sales and new listings. This year, while still high when looking at past years, it is more in line with a market showing some rebalancing,” said Skipworth. “While still showing total active listings below the low points of 2016 and 2017, we have seen an increase, albeit a very slow increase.”

There have been indications of buyer fatigue in the marketplace, while a lack of home inventory is keeping competition still strong among purchasers. With travel now more appealing, some buyers and sellers may even have taken time for spring break instead of participating in the real estate market, Skipworth explained.

Active listings down from 2021, but on the rise

At the beginning of January, there were a little less than 5,000 active listings available across Greater Vancouver. That number has since increased to 7,613 listings, up 18 per month by almost 1,200 homes from mid-February.

However, this is just a “drop in the bucket for what’s needed to have an impact on the real estate market,” said Skipworth, and well below the 9,467 active listings that were available in mid-March 2021.

While the biggest deterrent to sales continues to be the lack of homes available for buyers, other factors are playing a role in supply and demand, too.

“Multiple offers are still occurring and the absorption rate of listings coming on market continues to be at all-time highs for this time of year,” said Skipworth. “The first Bank of Canada Rate increase that occurred had little to no impact on the demand for real estate, while global events and buyer fatigue may be playing a factor in the lower level of sales being seen this March compared to March 2021.”

Greater Vancouver could see 7,000 new listings by end of month

By the midpoint of March, Greater Vancouver has recorded 3,531 new listings. Skipworth predicts that we could see more than 7,000 new homes by the end of the month, which is still well below the 8,479 new listings that came online in March 2021. At the midpoint of the month, March’s new listings are down 17% yearly.

So far, there have been 2,184 home sales across the region, down 18% mid-month compared to March 2021 when 2,663 properties were bought and sold. This month’s sales so far have been enough to surpass the 3,451 homes sold in February, but not quite the amount needed to pass March 2021’s 5,843 homes that traded hands.

“Comparing home sales to 2021 is almost as out of touch as comparing them to 2020,” said Skipworth. “Two extreme years in a time of absolute unprecedented times. With both those years being the years of extremes, 2022 could be the year of normalizing – as much as continued price growth and extreme inventory shortage could be seen as normal.”

Skipworth also noted in his report that the plans to introduce a “cooling off period,” by the province is “likely to throw more confusion and stress into the real estate market,” than provide needed relief for home purchasers. A cooling off period is designed to give buyers an opportunity to reconsider and withdraw their offers, a practice that currently exists in the pre-construction sector.

As we continue to move through spring break and global unrest, Skipworth said that the remainder of March will likely be similar to what we’ve already experienced.

“Kind of like the tale of Goldilocks – not too hot but certainly not too cold at all,” he said. “But more so for buyers, not just right as the competition for too few listings continues.”

Greater Vancouver’s Housing Market Shows Signs of Rebalancing Mid-March by Michelle McNally | Livabl

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