Home demand outstrips supply in Metro Vancouver as prices creep higher

Demand for homes in Metro Vancouver continue to outstrip supply, which has dipped to a three-year low, said the region’s real estate board.

The Real Estate Board of Greater Vancouver reported 3,494 home sales in October, about 22 per cent higher than the month’s 10-year historical average.

“Home sale activity continues to outpace what’s typical for this time of year and the pool of homes available for sale is in decline,” said the board’s economist Keith Stewart in a statement on Tuesday. “This dynamic between supply and demand is causing home prices to continue to edge up across the region.”

Metro Vancouver remains firmly in seller’s market territory, but many homeowners appear disinterested in putting their homes up for sale.

The sales-to-active listings ratio for October is 43.5 per cent for all property types, said the board. For detached homes, the ratio is 33.6 per cent; for townhomes 64.4 per cent; and for apartments, 46.7 per cent.

Generally, analysts say upward pressure on home prices occur when the ratio stays above 20 per cent over several months.

Home prices for the region inched up one per cent compared to last month.

The benchmark price for all home types in Metro Vancouver currently sits at $1,199,400, with detached homes seeing the largest year-over-year increase.

The largest gains in house values were in Maple Ridge (33 per cent), Whistler (32 per cent) and Pitt Meadows (30 per cent).

The benchmark price of a detached house in the region is $1,850,500, 20 per cent higher than the same period last year.