More evidence that Vancouver’s housing market is undergoing a correction.
The Real Estate Board of Greater Vancouver says the number of homes listed for sale in Metro Vancouver has fallen to its lowest level since 2016. Home sales in the West Coast city had been at record highs this past March but have since plateaued and begun to decline, according to the Real Estate Board’s third-quarter housing review.
The increasing correlation between sales and new listings during the pandemic is consistent with more buyers selling their homes and purchasing other, larger ones.
The board said new homes have continued to be built in Vancouver during the pandemic, with a specific focus on projects for the rental market.
Home sale listings may be back at 2016 levels but interest rates are still unprecedentedly low, which could mean longer and deeper debt for people buying a home. The Real Estate Board said Metro Vancouver's job market continues to recover slowly from the pandemic.
The board said listings and sales across the Vancouver region are expected to reflect long-term averages as the fourth quarter begins, and expects any increase in the number of homes for sale to be “at a rate well below historical norms.”
