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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.
The seller of one of a Surrey home recently sold by Arora, for example, is moving to Vernon, where he can permanently work from home. “He’s cashing out.”
Vancouver real estate agent Les Twarog said there are “hot” micro markets for detached homes, such as one for homes under $1.5 million in East Vancouver and another for homes under $2.5 million on the west side, where there are some multiple offers and over ask sales.
But it’s certainly not the boom of 2016, 2017 and 2018 when “you might get $300,000 or $400,000 over ask on a $2 million listing,” he said.
jlee-young@postmedia.com
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