January 2021 Vancouver Real Estate Market Update!

Vancouver Real Estate Update - January 2021

Already we are knee deep in February 2021! January seemed to fly by us in no time. So what happened in our traditionally slow month of January this year? Let’s dive in and take a look….

We’re at a turning point now in Vancouver on the East and Westside, particularly in condos. Houses continue to be the hottest thing since sliced bread - multiple offers, over asking, and sold the same days coming out left, right and centre. Absolutely drowning in them.

Condos though, for the longest time, have been consistently stubborn and wouldn’t shift. Holding everything up like that Sunday driver in the fast lane…. On a Monday morning. Well finally, they have indicated, and STARTED to change lanes. For those who don’t understand my incredible analogy (I’m gifted I know) I’m trying to say the condo market is beginning to move.

Now you can complain, online comment about how everything is going to crumble, negative this and negative that. But the market HAS to turn at some point, it will not, and can not, stay soft forever. It’s not how this game works friends. It’s our job to know the signs of when the market is turning, and we believe when it turns, it’s going to turn fast!

Overall, home sales were up 52.1%, Jan 2020 vs. Jan 2021 for Greater Vancouver. Whilst ov
erall listings were down year over year by 3.6%. So just contemplate that for a minute. Home sales are up over 50% and inventory is down 3.6%. Very clear how we are shaping up for a busy market and sellers galore! ESPECIALLY when you consider we’ve already gone through the drastic increase in inventory that happens between the end of December/January, which totalled an 86% increase by the way. It’s a much more steady increase from here into Spring.
Condo sales on Vancouvers’ East (VE) and West Side (VW) were up 35.35% year over year. Comparing December 2019 Vs. December 2020 saw this number at 48.5%. These numbers were around 5-10% before this comparing October 19 vs October 20, and November 19 to November 20. You can see a noticeably higher trend starting to form here. On top of this, we’ve already gone through the December to January major increase in listings (a combined 112.27% increase for VE & VW), one of the most substantial periods we see listings increase. From here it is much more steady. When you look at the market problem across Greater Vancouver right now, supply is not keeping up with demand. This is now starting to take form in the case of Condos on the East & West side. So inventory remains higher than average, but sales trends are picking up. With inventory remaining steady, but home buyer demand building a trend of increases, the end result is more demand than inventory. This is when we see markets shift into sellers markets.

Houses having been in this predicament for a long time, still are. This would explain the average Home Price Index (HPI) increase of 10.8% for detached homes comparing Jan 2020 to Jan 2021.

So it’s plainly obvious to see that condos on the East and West side are starting to shape up to be busy. Sales activity is heating up noticeably and forming a trend, inventory is not going to be increasing in the same way it has been. Add this to the low interest rates, the reduced pricing that has taken place already in this market, vaccine rollout and people returning to their offices more over the next 6 months, and it’s a pretty attractive proposition!

Our job is to see the signs and recognise, and this is exactly that. If you’re waiting and watching, this is what you should have been waiting and watching for.

Once again we find ourselves at a key moment in which those who act, will be winners, and those who don’t will still be trolling comments on YouTube trying to hide their pain.

As always, thanks for tuning in!

Until next week,

Jay Mcinnes
T: 604.771.4606

Ben Robinson
T: 604.353.8523