Yahoo Finance Vancouver home prices jump amid 'fierce competition': REBGV
The real estate boom continued to start off the new year as buyers fought for a limited supply of homes for sale, helping to push Vancouver home prices higher.
The Real Estate Board of Greater Vancouver (REBGV) says sales fell 4.4 per cent in January compared to January 2021. Sales fell 15 per cent compared to December 2021.
There were fewer homes available for sale as new listings fell 6.9 per cent year over year. The total number of listings for sale dropped 31.8 per cent.
"Our listing inventory on MLS is less than half of what would be optimal to begin the year. As a result, hopeful home buyers have limited choice in the market today. This trend is causing fierce competition for a scarce number of homes for sale, which, in turn, increases prices," said REBGV economist Keith Stewart.
The sales-to-active listings ratio was 40.3 per cent for all types of homes and 28 per cent for detached homes.
The tight conditions helped push the benchmark price for all types of homes up 18.5 per cent year over year to $1,255,200 and two per cent compared to December 2021. Attached homes were the hottest segment, up 24.3 per cent year over year to $1,029,500 and 2.5 per cent compared to December 2021.
Low interest rates have also helped fuel the rally. Bank of Canada Governor Tiff Macklem surprised many market watchers by not raising its benchmark interest rate last week. But he signalled the central bank will begin hiking soon.
"As we approach spring, we'll keep a close eye on the impact of rising interest rates on buyers' willingness to buy and on whether more homeowners will opt to become sellers in what's traditionally the busiest season of the year," Stewart said.
The REBGV continued to call on governments to help with supply.
"With home prices reaching new highs in recent months, the need has never been greater for governments to collaborate with the building community to expedite the creation of housing supply and provide more choice for those struggling to buy a home today," said Stewart.
Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.
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