After a period of calm, The Metro Vancouver region is revving up again.
Residential home sales in the Greater Vancouver area rose 52.1 per cent to 2,389 in January, compared to the same period last year, according to The Real Estate Board of Greater Vancouver (REBGV).
Last month’s sales were 36.4 per cent above the 10-year January sales average.
More crucially, the sales-to-active listing ratio stood at 28.8 per cent — a level above 20 per cent suggests prices are expected to climb higher. Last January that figure stood at 18.2 per cent.
“Shifting housing needs during the pandemic and historically low interest rates have been key drivers of demand in our market over the last six months,” Colette Gerber, REBGV Chair, said in a statement. “People who managed to enter the market a few years ago, and have seen their home values increase, are now looking to move up in the market to accommodate their changing needs.”
The Vancouver region’s MLS Home Price Index shot up 5.5 per cent in January, compared to the same period last year to take average home prices to a jaw-dropping $1.05 million. The MLS price index grew 0.9 per cent compared to December.
The average price of a detached home in the Greater Vancouver Area has soared 10.8 per cent compared to January 2020, while attached homes have shot up 4.3 per cent, while apartment prices have risen 2.2 per cent during the period.
“In addition to low interest rates, people who managed to enter the market a few years ago, and have seen their home values increase, are now moving up and fuelling the demand,” said Daren King, analyst at National Bank of Canada.
A Reuters poll on global housing markets shows Canadians expect easy monetary policy and a desire for more living space to be key drivers of housing market activity this year.
Curiously, Canadians were most concerned among real estate investors in seven countries about the prospects of the housing market being derailed due to resurgence of COVID-19.
Oxford Economics expects Canadian home prices to grow 6.8 per cent in 2021, a slower pace from the 8.2 per cent surge achieved last year.
Despite COVID-19 pressures, home sales hit an all-time high of 551,000 units last year, eclipsing the previous high of 539,000 reached in 2106.
Tight supply and a desire for more living space will continue to push prices higher in adjoining areas of key cities such as Vancouver, Toronto and Montreal.
“Following a temporary spike to nine months of supply during the April lockdowns, the national inventory of homes for sale fell to a record-low 2.1 months in December,” wrote Tony Stillo, director of Canada Economics at Oxford Economics. “These incredibly tight supply-demand conditions created a robust sellers’ market that put exceptional upward pressure on prices.”
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NEW AMAZON CEO: Amazon.com Inc. on Tuesday said founder Jeff Bezos would step down as CEO and become executive chairman, as the company reported its third consecutive record profit and quarterly sales above US$100 billion for the first time. The transition, slated for the third quarter, will make current cloud computing chief Andy Jassy Amazon’s next chief executive officer (pictured).
- Mary Ng, minister of small business, export promotion and international trade, to participate in a virtual event organized by the Singapore Manufacturing Federation and the Canadian Chamber of Commerce in Singapore
- The results of a joint investigation into Clearview AI’s use of facial recognition technology will be released
- B.C. Jobs and Economic Recovery Minister Ravi Kahlon announces a new grant program for B.C. small- and medium-sized businesses
- The Canadian Association for Long-Term Care holds a press conference to share more about the immediate and longer-term asks that homes across the country need to support Canada’s seniors
- Notable Earnings: Stingray Group, Suncor Energy Inc., Canaccord Genuity
For market participants, these are among the most interesting times we’ve seen since the 2000 tech bubble. Downtrodden companies such as GameStop, AMC Entertainment Holdings, Blackberry, Bed Bath & Beyond Inc., Tootsie Roll Industries and even Twinkie-maker Hostess Brands Inc.have suddenly seen their share prices explode higher in the past few weeks, rebranded as “meme stocks” and bid up by a new breed of retail investor, writes FP columnist Martin Pelletier.
“In our opinion, what is happening is similar to the pump-and-dumps schemes of the past that were made famous in the 2000 film Boiler Room or the 2013 film Wolf of Wall Street. The strategy is to establish a large position in relatively unknown or unloved name and then stir up interest by cold calling people with an exciting made-up story, an “insider tip” or secret strategy in order to pump up the price,” Pelletier wrote.
If the meteoric rise of GameStop stock value has proven anything, it’s that casual day trading is more accessible than ever to those outside of Wall Street. And just as the retail stock has risen, so has the value of Bitcoin, which is expected to hit over $100,000 per unit this year.
With the increased interest in day trading, there also needs to be increased protection on your computer to ensure the safety and security of your transactions.
If you’re in the market for cryptocurrency investments, or simply conduct most of your life online, Windscribe VPN offers protected browsing, personal data, ad-blocking, and much more, according to our content partner StackCommerce.
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