Vancouver Real Estate Market Update For February 2022!

Vancouver home sales reached an all-time high in 2021 but we began 2022 with just over 5,000 homes for sale across the region. This is the lowest level we’ve seen in more than 30 years. Find out what it all means in this month's Vancouver real estate market update video.

This is your Vancouver real estate market update for February 2022 and we’re getting into it right after this.

Hey, everyone. I’m Craig Veroni with RE/MAX Masters Realty. I’m your local real estate agent here in Vancouver, BC. In today’s video, I’m going to cover what’s happened in the Vancouver real estate market through the month of January and what might be coming that could affect that market.

I shoot a ton of videos about what it’s like to live, love, and own here in Vancouver so, if you haven’t yet, please hit that subscribe button, and don’t forget to click on that bell so you can be notified immediately when I have a new video out. I really want you to be able to stay up to date on all the latest tips and insights into the Vancouver real estate market so you can become an expert too.

So, let’s jump into it. Metro Vancouver home sales reached an all-time high in 2021 and housing needs remained a top priority for residents in the second year of the COVID-19 pandemic. 

The Real Estate Board of Greater Vancouver reported that residential home sales in the region totaled 43,999 in 2021, a 42.2 percent increase from the sales recorded in 2020, a 73.6 percent increase from the homes sold in 2019, and a 4 percent increase over the previous all-time sales record set in 2015. 

Last year’s sales total was 33.4 percent above the 10-year sales average and last year’s listings total was 11 percent above the 10-year average. Despite this, home listing activity didn't keep pace with the record demand we saw throughout 2021. This imbalance caused residential home prices to rise over the past 12 months.

The MLS® HPI composite benchmark price for both detached homes and townhome prices increased 22 percent in the region last year, while apartments increased 12.8 percent. 

We began 2022 with just over 5,000 homes for sale across the region. This is the lowest level we’ve seen in more than 30 years. With demand at record levels, residents shouldn’t expect home price growth to relent until there’s a more adequate supply of housing available to purchase.

To give you an idea of how we started off the first month of 2022, the Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region saw a 4.4 percent decrease from the sales recorded in January 2021, and a 15 percent decrease from the homes sold in December 2021. 

Last month’s sales were 25.3 percent above the 10-year January sales average. 

The first month of 2022 saw home sales come down from last year’s record-setting pace, while low supply continued to cause home prices to edge higher across Metro Vancouver.

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.

To give you an idea of how fierce, I had clients competing in a multiple offer situation for a 2-bedroom condo in Lynn Valley. This home had 6 offers, sold for $77,000 over its asking price and $87,000 more than an identical unit, on a higher floor, just one month earlier.

So, if you are a buyer who’s been looking for a home over the past several months, it would be wise to find a home sooner rather than later because prices will continue to increase in the near future.

If you want to stay on top of the market, whether you’re buying or selling a home, knowledge is key and the Snap Stats market reports are a fantastic way to arm yourself with tons of knowledge on your market area.

To download the full market reports simply click on the images below to get the Metro Vancouver, Greater Vancouver, or, Fraser Valley reports.

If you’re watching this on Youtube, down in the description section is a link to a sample report which I send to my clients on a monthly basis. Feel free to review that and if it’s something you find of value, and trust me you’re going to love these reports, you can simply fill out your name and email address to start receiving the reports monthly.

What’s Coming?

In November’s market update video, which you can watch here, I talked about the BC government's plans to introduce a cooling-off period for resale properties. There is already a 7-day right of rescission period for pre-sales. If introduced, this could have numerous unintended consequences in our real estate market.

The BC government also plans on eliminating so-called blind-bidding in multiple-offer situations, which will definitely impact the real estate market. In the conversations I’ve had with buyers and sellers regarding this, they are torn. Some buyers do not want anyone else knowing what their offer price on a property is and yet they would like to know what other people have offered. Unfortunately, you can’t have it both ways, buyers. Most sellers however do not want this implemented as they feel it will negatively affect the sale price of their home. The reality is most people will be both buyers and sellers at some point and these proposed changes will impact a lot of people.

We are several months away from any of this coming into effect so we will have to wait and see what the government does and the changes it will have on our real estate market.

As we approach spring, we’ll also 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. “With home prices reaching new highs in recent months, the need has never been greater for government 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.