February was a hot month for homebuyers in Vancouver. Now the latest real estate numbers confirm what would-be homebuyers have likely already noticed. After nearly four years, the sales-to-inventory ratio have crossed the threshold to officially become a seller’s market
According to the Real Estate Board of Greater Vancouver, home sales in Metro Vancouver were up 20.2 percent in February compared to a 10-year average for the month. Listings also increased, but not enough to meet the new demand.
“This is a very, very strong February, stronger than normal,” said board president Ray Harris.
One of the Busiest Months for Real Estate Agents
The low interest rate coupled with low supply, particularly for detached homes, have resulted in what’s been one of the busiest months for real estate agents since February 2007.
Although oil prices and other factors have resulted in real estate slumps elsewhere in Canada, new research by RBC Economics show that supply and demand continues to spur real estate prices in Vancouver.
In February, the sales-to-active-listings ratio jumped from 17 to 25.7 percent. For the first time in four years, the ratio crossed the 22 percent threshold, signaling the start of a seller’s market.
It was the highest the ratio has been in Metro Vancouver since March 2011, said Harris.
Although Harris mentioned one month does not define a market, he added that three consecutive months over the 22 percent threshold would be a clear indication that the housing market has indeed switched sides. This could represent great benefits for detached homeowners who have been waiting for the right time to sell and downsize to condos or townhouses