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Top 10 2021 Real Estate Headlines

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Our Top 10 2021 Real Estate Headlines

The Real Estate Market had its ups and downs in 2021, we’ve compiled a list of our Top 10 most interesting Real Estate Headlines of 2021. 

 1) 2021 home sales will rival 2016 boom year, says B.C. Real Estate Association

 

This article by the Vancouver Sun outlines how busy realtors were in the beginning of the year. The drop in interest rates created a demand for new homes in January 2021, but there are not enough single family homes on the market. The British Columbia Real Estate board forecasted sales that were the highest since 2016, which spread through world news. 

 

https://vancouversun.com/news/local-news/2021-home-sales-will-rival-2016-boom-year-says-b-c-real-estate-association 

 

2) Record home sales in March 2021, new supply increases 

This article by newswire.ca summarizes the change in the Canadian real estate market in March 2021. The market shortage was looking up in March compared to January and February, home sales recorded by the Canadian MLS increased by 5.2% which led to new listings in March 2021 climbing 7.5% from February. 

 

https://www.newswire.ca/news-releases/record-home-sales-in-march-2021-new-supply-increases-826577542.html 

 

3) B.C. sees strong real estate sales in April, but market could calm in coming months: BCREA

This Global News article sheds light on the April 2021 real estate market. According to the British Columbia Real Estate Association the 13,600 homes sold in BC. The average price of a residential home across BC was $946,606 which was a 29% increase from April 2020.

https://globalnews.ca/news/7854925/bc-real-estate-sales-april-2021/ 

 

4) Surrey and Fraser Valley home sales break record for ninth straight month

This article by Daily Hive outlines how home sales in the Fraser Valley in May 2021 broke records for the ninth consecutive month, and reached near-historic levels of new listings. Detached homes, townhomes, and condos in Surrey each saw a price increase in May 2021 from May 2020.

https://dailyhive.com/vancouver/surrey-metro-vancouver-fraser-valley-real-estate-statistics-may-2021 

 

5) B.C.’s real estate sales up almost 35% in June

City News defines how demand in British Columbia is contributing to a close to 35% increase in home sales in June, 2021. The supply shortage continued to make an impact in June 2021, there was more demand than homes on the market. The average MLS® residential price in B.C. was $910,445 last month

https://vancouver.citynews.ca/2021/07/12/bc-real-estate-sales-june/ 


6) Home sales continued to cool in July, down 3.5 per cent month-over-month

 

CTV’s article about the July 2021 market provided some optimism for buyers. Although it was still a seller’s market, the Canadian national sales to list ratio reached 74%. The Canadian Real Estate Board found that the average price of a home sold reached $662,000 in July, up 15.6 per cent from the same month last year.

https://www.ctvnews.ca/business/home-sales-continued-to-cool-in-july-down-3-5-per-cent-month-over-month-1.5548865 

 

7) Fraser Valley posts highest home sale, price increases

 

This article on biv.com highlights how the Fraser Valley had the most home sales. The BC real estate board states that total sales for the year as of August had reached 19,311 with an average price of $951,151. In August 2021 for every 100 townhomes on the market 94 were sold in the Fraser Valley.

https://biv.com/article/2021/10/fraser-valley-posts-highest-home-sale-price-increases 

 

8) This is the busiest year ever for the housing market, with prices up 18%

 

CBC sheds light on the business of the October, 2021 market.  Across Canada the average selling price rose to $716,585. The Bank of Canada reduced interest rates to stimulate the economy after 2020. This has played a role in the urgency to buy, people know that rates will eventually go up and want to get in the Real Estate market before it does. One third of buyers had to borrow money from their parents for a down payment. 

https://www.cbc.ca/news/business/crea-housing-october-1.6249145 

 

9) Despite flooding and road closures, Fraser Valley home sales remained strong in November 2021

 

Daily Hive recaps the natural disaster in BC in this article. The province was hit with some of the worst flooding it has ever experienced. Regardless of the floods home sales in British Columbia reached the second highest volume for November second to November 2016. 

https://dailyhive.com/vancouver/surrey-abbotsford-metro-vancouver-fraser-valley-real-estate-statistics-november-2021 

 

10) Toronto developer takes on outside-of-the-box project by turning house into six condominiums

 

This piece by the global mail describes how a Toronto based developer plans to flip a house into six condos. These units varied from studios to 3 bedrooms, they had plans for all units except for the studios to have private outdoor terraces.  

https://www.theglobeandmail.com/real-estate/toronto/article-toronto-developer-takes-on-outside-of-the-box-project-by-turning-house/ 

 

 

Our Thoughts 

Many home buyers were drawn to the idea of purchasing a new home after being stuck during the peak of the pandemic and others felt a need to be closer to family, creating a demand for larger multi generational homes. The dropped interest rates by the Bank of Canada led to higher than usual demand. There was a shortage of inventory which led to a seller’s advantage throughout Canada. Even when natural disasters struck the market remained strong. The supply shortage even inspired an innovative new multi family project in Toronto. 

The average price of a home in British Columbia increased by 21.9% from November 2020 to November 2021. According to the Canadian Real Estate Association, 29% of purchases that happened in 2021 were over asking.  Buyers would typically look at 8 homes over 8 weeks before making a purchase, inventory was not sitting on the market for very long.  

The Canadian housing market is strong and will most likely continue to be hot. The lack of supply will likely carry on in 2022 and home prices will continue to rise. However if the interest rates increase this will likely slow the rise, because demand will be slightly less than it was in 2021. Our intuition for 2022 is the market will continue to be a Seller’s Market and home prices will continue to increase but not as quickly as they did in 2021. This may inspire some innovative projects in the Fraser Valley so keep your ears open and eyes out. 

To control inflation the rates will likely go up, this means that many won’t be able to qualify for loans. The market will likely remain hot in the beginning of the year but if mortgage rates increase as predicted by some sources, we may see a decline in buyer activity. The trend would then proceed to decrease in demand by first time home buyers by summer 2022 and the demand for those looking to move up will slowly trickle by the fall. However, demand for high end real estate (aka luxury homes) will most likely not slow down and instead prices will continue to go up.  

Overall, many experts still foresee an increase in home values in 2022, but less of a steep increase that was observed this year.  As versed as we are in the Real Estate world, these are just some insights we have observed, we cannot be 100% certain of what will actually happen in 2022. 

If you would like to learn about the North Delta Real Estate market read our North Delta Real Estate Market Update (December 2021)

If you’re thinking of selling in 2022, a low inventory market could be a great opportunity for an opportunist. If you’re wondering what your home is worth and how to place your home on the market, call us today at 604-648-7800!

As an awarding-winning team (Top 1% in all the Fraser Valley Real Estate Board Teams since 2015) you will have a combined asset of over 20 plus years of local expert knowledge and guidance to best navigate this market.

 

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  • Sukh Brar Real Estate Group

    Sukh Brar Real Estate Group
    (604) 648-7800
    sales@sukhbrar.ca
    Top 1% Realtor according to the FVREB 2014-2019