Your Insights Into the Metro Vancouver Housing Market in February

As the number of properties available dropped, January home sales in Metro Vancouver slowed from a record-setting pace last year, according to the Real Estate Board of Greater Vancouver.

Compared to December 2021, the number of home sales fell by 15 percent as a total of 2,285 residential properties were sold last month. The lack of supply continues to drive up home prices to a record-breaking benchmark price of more than $1.2 million. 

This new benchmark represents an 18.5 percent increase from January 2021.

Keith Stewart, the Board's economist, says conditions in the market remain tight not only due to a scarce number of homes for sale, but also people taking advantage of low mortgage rates. 

"Our listing inventory on MLS is less than half of what would be optimal to begin the year. As a result, hopeful homebuyers have limited choice in the market today,'' said Stewart in a statement.

"This trend is causing fierce competition for a scarce number of homes for sale, which, in turn, increases prices," the economist added.

Such a trend is likely to continue through the rest of 2022 as the region is expecting more than 55,000 immigrants to arrive by the end of the year - equivalent to the population of the city of Port Coquitlam. 

The return of the international student population will also add to Metro Vancouver’s housing pressures. Consequently, the region is now in need of more housing supply than ever in order to mitigate the effects of high demand, low interest rates, and population growth.