Vancouver is going through a difficult and frustrating time for homeowners and sellers. Ebullient for retailers also confuses consumers, i.e.. From subdivided buildings to housing units, housing supply declines, leading to higher prices. But some homeowners are looking at interest rates to determine if the price increase could lead to a drop in sales and a lower interest rate.
Considering the limited housing stock and high demand, the impact of a growing area can be small. That being said, although the housing boom fell in December, conditions were stable by mid-2021. What do the numbers show, and can 2022 possibly be a decent market year?
Vancouver Real Estate Sale Continues Growth Amid Decreasing Housing Provision
According to the Real Estate Board of Greater Vancouver (REBGV), real estate sales fell 13.1 percent annually in December, making a total of 2.68 units. However, historically, real estate sales were up 33.4 percent above the December 10-year average.
In a Vancouver housing market survey last year, real estate prices rose 42.2 percent, comprising 43,999 units — the highest in the Vancouver housing market.
Housing prices were high in December for all types of buildings. The combined price of MLS® HPI for apartments increased by 22 percent annually to $ 1,910,200. The comparative price of attached housing increased by 22 percent to $ 1,004,900, while housing increased by 12.8 percent to $ 761,800.
Domestic prices follow a staggering sales activity in one of Canada’s largest cities. The MLS® HPI combination stand price for all Vancouver residential buildings increased by an annual value of 17.3 percent to $ 1,230,200.
Although the housing supply has improved, it has failed to keep up with the record high for the whole year. This, says Keith Stewart REBGV Economist, “has caused housing prices to rise over the past 12 months.”
Last year, household listings increased by about 15 percent to 62,265 units, which was 11 percent above the 10-year average. Active residential units decreased by 38.7 percent, to 5,236 units.
The construction of the new houses took effect in 2021, although some experts argue that it may not be enough. According to the Canadian Mortgage and Housing Corporation (CMHC), housing prices have dropped by 43 percent, comprising 1,568 units in November. However, in the first 11 months of last year, housing construction increased by about 18 percent to 23,828 units.
“Home has been a focus for residents throughout the epidemic. With lower interest rates, increased household savings, more flexible work arrangements, and higher housing prices than ever before, Metro Vancouverites, with recorded numbers, assesses their housing needs and options, ”Stewart said in a statement.
“We are starting 2022 with more than 5,000 homes for sale across the region. This is the lowest rate we have seen in more than 30 years, ”added Stewart. “Given the demand at recorded levels, residents should not expect a rise in housing prices until there is enough space for affordable housing.”
Is There a Vibrant Breath of Vancouver Housing Market?
The Bank of Canada (BoC) has signed an agreement to raise interest rates in early March to help curb inflation. This will increase borrowing costs, which remain stable from a three-fold decrease in March 2020. A higher borrowing rate will increase consumer spending.
While the consensus is that while high mortgage rates may lead to some decline in the Vancouver real estate market, industry experts agree that there will be no sharp adjustments, especially as demand remains high and commodity prices fluctuate at very low levels in about 30 years. .
Like Toronto, Vancouver is often named as one of the most desirable destinations in the world, Canada and the world. It maintains a thriving economy, a beautiful landscape (mountains and sea views), and is close to the United States. With this widely held view, it is hard to imagine that this large western city would experience such a catastrophe anytime soon.
So, looking back on the whole of 2022, what can the average consumer expect to pay for a place in Vancouver? According to the 2022 Canadian Housing Market Outlook Report, real estate prices in Vancouver are projected to increase by 5.5 percent to about $ 1.3 million.
About Jasmohan Singh Bains
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