Continued low inventory kept the upward pressure on home prices in Delta last month, especially in Ladner.
According to the Real Estate Board of Greater Vancouver (REBGV), January home sales were down from last year’s record-setting pace, but that had more to do with supply rather than demand.
“Our listing inventory on MLS is less than half of what would be optimal to begin the year. As a result, hopeful home buyers have limited choice in the market today. This trend is causing fierce competition for a scarce number of homes for sale, which, in turn, increases prices,” said REBGV economist Keith Stewart.
That was none more evident than in Ladner last month where the benchmark price of a single-family detached home increased by 4.8 percent from December 2021 to $1,459,800. Only Port Coquitlam (6.1 percent) saw a bigger surge in the REBGV region.
Townhouses also remain a hot commodity in Ladner with a benchmark price of $863,100. That’s a 4.5 percent jump from the previous month. The benchmark price for a Ladner apartment was $603,800, a 3.7 percent increase.
Single-family detached homes in Tsawwassen rose by 2.4 percent to $1,561,500. Townhouses saw the biggest gain to $936,900. That benchmark price is a 3.8 percent increase from December 2021. Apartments in Tsawwassen rose by 2.3 percent to $659,200.
The benchmark price for a single-family detached home in North Delta increased by 4.3 percent from December 2021 to $1,457,900. Townhouses rose by 5.7 percent to $809,800 while apartments saw a monthly jump of 7.9 percent to $480,800.
“As we approach spring, we’ll keep a close eye on the impact of rising interest rates on buyers’ willingness to buy and on whether more home owners will opt to become sellers in what’s traditionally the busiest season of the year,” Stewart added. “With home prices reaching new highs in recent months, the need has never been greater for government to collaborate with the building community to expedite the creation of housing supply and provide more choice for those struggling to buy a home today.”
For all property types within the REBGV region, the sales-to-active listings ratio for January 2022 was 40.3 per cent. By property type, the ratio is 28 per cent for detached homes, 51.6 per cent for townhomes, and 49.7 per cent for apartments.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
Overall, The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,255,200. This represents an 18.5 per cent increase over January 2021 and a two per cent increase compared to December 2021.
