Wednesday, August 04, 2021

Vancouver housing market overview - July 2021

This post presents some graphs that demonstrate the overall status of the Greater Vancouver housing market (specifically REBGV but the basic analysis extends to FVREB as well)

Housing transactions:

There is a dearth of new listings, for whatever reason, and this is likely leading to some additional competition among buyers. Months of inventory remains very low and this is unlikely to lead to a condition where prices will be soft in the fall. Sales remain quite strong. I don't see the current market as soft. Interest rates are low -- I am hearing near 2% for a five year fixed term. This allows a significant amount of monthly principal to be carried. This is almost certainly affecting demand, as is, I am guessing, some additional perceived cash flow due to travel restrictions and such. I don't know for how long such factors will persist. Any predictions are statistical.