It’s a great time to sell a home.
The real-estate market remains firmly in seller’s territory as indicated in a new report by the B.C. Real Estate Association.
“With so few listings, markets are starved for supply and prices are under extraordinary pressure,” BCREA chief economist Brendon Ogmundson said in a media release Thursday (February 11).
According to BCREA figures, the sale-to-list ratio for January 2021 stood at 35.4 percent.
The ratio is more than double the rate in January 2020, which was 17 percent.
As a measure, a higher ratio indicates strong buyer demand.
Based on a rule by the Vancouver Real Estate Board, a ratio of 20 percent and above indicates a seller’s market.
A seller’s market means prices are generally rising.
Meanwhile, a ratio of 12 percent or below means there is less demand for homes.
As a result, prices tend to trend down.
Additionally, a balanced market is the sweet spot between a ratio of 12 percent to 20 percent.
In its new report, the BCREA indicated that total active residential listings were down 21.5 percent to 20,254 units in January 2021.
According to the organization, this is the lowest level of provincial active listings on record since the year 2000.
“With strong sales and so few listings, market conditions are exceptionally tight with less than three months of total supply,” the BCREA noted.
A total of 7,169 homes were sold in January 2021, an increase of 63.3 percent over January 2020.
The BCREA noted that the number is over a thousand higher than the previous record for the month of January, which means a new record.
The average price of a home in the province was $845,169, a 16.1 percent increase from $728,269 recorded in January 2020.
A total of $6.1 billion worth of homes sold in January 2021, an 89.6 percent increase from January last year.