Greater Vancouver home sales have shockingly gone up month-over-month in December. As clearly seen in the chart above, this is a record high in recent times and breaks all time high by a massive margin. This is an alarming sign that early 2021 is going to be a real doozy. Are we going to see likes of early 2015 or early 2016? My guess is somewhere in between those 2 years. Time to sit back and watch...
Total Inventory dropped by 2,580 month-over-month which is the biggest month-over-month drop in December since 2011. It is well below expectations and there are no signs of panic selling as many predicted several months ago. In fact, Total Inventory will continue to look quite low if sales continue to remain at such strong levels.
New Listings remain high but it is starting to return to more typical levels. For the start of 2021, New Listings will continue to come closer to the typical 10-year average. Given that the interest rate is anticipated to be low for few years, home prices are expected to rise steeply in 2021. This means there will be many homeowners in the holding position to start the year.
Year 2020 wraps up after all as a bull market as Months of Inventory finishes under 5.0 in 9 out of 12 months of the year. Months of Inventory continues its decline with only 2015 in its way of it being a historic low. Sales are sizzling hot and it will continue to explode leading to suppressed Months of Inventory in early 2021.
De-listings are falling off the chart as sales are exploding in December. This is a typical finding of a market that is quickly turning into a seller's market. This is an alarming sign that many more home listings are selling rather than expiring. In 2021, I expect de-listings to remain low while sales skyrocket in early 2021.
