Article Written By: Joanne Lee-Young
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Analyst and real estate agent Dane Eitel said one important nuance to see is that in 2015, the inventory of detached homes in Greater Vancouver was 57,308, but there were 17,372 sales. In 2020, the inventory was 50,225 homes, but there were only 10,832 sales, which is down 15 per cent from the 15-year average of 12,748.
Between 2005 to 2019, the total yearly inventory average was 70, 082. So in 2015, the inventory number was 18 per cent lower than the 15-year average, but in 2020, it was 28 per cent lower.
It means the increase in home values in 2020 was less about sales and demand — and even interest rates, which were also low in 2015 — and more about a scarcity of inventory, said Eitel.
The difference could be important if home prices edge back up to 2016 levels even though “the economy is not recovering nearly as fast as the housing market would indicate.”
The COVID-19 vaccine might ease health concerns for sellers who are currently happy to hold their detached homes. They might be motivated to list their homes and take the gains if prices continue to rise spurred on by low inventory that is so historically low, it will take some time to ease, said Eitel.
