BCREA said BC needs twice the listings to maintain prices

Double the listings needed

This year the province had three times as many buyers searching for homes than sellers looking to sell — and that’s driving prices up, a new report from the BC Real Estate Association said.

According to the report, COVID-19 created a large unprecedented demand for housing, with the supply of available listings fell.

BCREA said though the demand has somewhat normalized, most B.C. housing markets are still undersupplied, creating the unbalance.

At the peak of market activity— in March 2021— the province saw the highest surge ever recorded.

In that peak, an estimated 67,000 buyers were looking for homes, while there were only 24,000 properties listed.

The prices increased significantly as each listing often got multiple offers.

BCREA said pressure on demand was eased through sales, while some buyers were forced out of the market due to cost restraints or discouraged by the low supply.

The average price of a B.C. home has gone up by almost 25 per cent since the start of the pandemic.

Even with the total demand trending towards historically average levels, BCREA predicts the provincial market will need almost double the number of active listings over the course of the pandemic to meet the new demand and keep prices flat over the period.

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