Where have the homes gone?
Keith Stewart
REBGV
The Real Estate Board of Greater Vancouver’s (REBGV) latest economic analysis takes a deeper look at housing supply trends in Metro Vancouver and the ratio of buyers to sellers that have been active in the market throughout the COVID-19 pandemic.
Metro Vancouver’s real estate market has seen heightened, and in some cases record-breaking, sales activity throughout much of this period. On the supply side, home listings have struggled to keep pace, causing inventory levels to reach lows not seen in years.
In this new report, REBGV Economist Keith Stewart assesses housing supply levels in Metro Vancouver and the factors affecting it during the pandemic.
“After a brief lull in market activity in the early months of the pandemic as both sellers and buyers left the market, sales have been running above long-term averages due to a steep rise in demand. Prices have increased because supply (number of sellers) hasn’t kept pace.”
Keith Stewart, REBGV economist
In 2021, the market moved into a diverging pattern of rising demand and decreasing supply, placing renewed upward pressure on prices.
The ratio of buyers to sellers in the region peaked at 1.5 in March 2021 and remains elevated.
Current lows in housing inventory are, in part, a consequence of rising demand.
Despite high sales, many detached and attached sub-markets continue to see multiple buyers searching for homes compared to sellers.
COVID-19 has highlighted the challenge of crafting policies that help supply keep pace when demand rises. All levels of government can help by supporting policies that encourage supply creation.
© 2021 REBGV