Vancouver Housing Market Outlook (Fall 2020)

The Vancouver housing market remained strong in March, but began to slow down in mid-April due to COVID-19 lockdowns. Vancouver continued to experience high prices and low inventory during lockdowns, similar to pre-COVID levels, and multiple offer situations were prevalent throughout Q2.

May and June 2020 saw a pickup in housing market activity in Vancouver as restrictions lifted and buyers and sellers became more confident and comfortable with the thought of buying and selling.

The housing market pickup is expected to continue throughout the remainder of the summer and into fall as economies are now reopening and Canadians are becoming more comfortable with resuming activities. Moving into fall, based on recent activity, RE/MAX predicts that Vancouver, British Columbia home prices will increase by 3.6% throughout the rest of the year.

Western Canada

While COVID-19 lockdowns in March and April slowed down the housing market in Western Canada, transactions in Kelowna, Saskatoon and Vancouver resumed by May, with sales in both May and June surpassing year-over-year levels. Many buyers put their plans on hold at the peak of COVID-19 lockdowns, but they returned to the market quickly to make up for lost time. Edmonton’s housing market quickly bounced back to pre-COVID levels in June, while Saskatoon experienced its busiest June in years; this momentum is anticipated to continue into the fall market, with  RE/MAX brokers and agents estimating a three-per-cent increase in average residential sale prices for the remainder of the year. Overall, brokers and agents in Western Canada say the potential buyers they are talking to are not too concerned with a potential second wave of COVID-19 impacting their real estate journey, and RE/MAX brokers are estimating steady activity to round out 2020.

Canadian Housing Market Heat Map Fall 2020

.

Canadian Housing Market Outlook

Leading indicators from RE/MAX brokers and agents across Canada’s housing market point to a strong market for the remainder of 2020. According to the RE/MAX Fall Market Outlook Report, RE/MAX brokers suggest that the average residential sale price in Canada could increase by 4.6% during the remainder of the year. This is compared to the 3.7% increase that was predicted in late 2019.

.

The pandemic has prompted many Canadians to reassess their living situations. According to a survey conducted by Leger on behalf of RE/MAX Canada, 32% of Canadians no longer want to live in large urban centres, and instead would opt for rural or suburban communities. This trend is stronger among Canadians under the age of 55 than those in the 55+ age group.

Not only are Canadians more motivated to leave cities, but changes in work and life dynamics have also shifted their needs and wants for their homes. According to the survey, 44% of Canadians would like a home with more space for personal amenities, such as a pool, balcony or a large yard.

Canadians equally split on their confidence in the housing market

Canadians are almost equally split in their confidence in Canada’s real estate market, with 39% as confident as they were prior to the pandemic, and 37% slightly less confident. When it comes to the prospect of a second wave of COVID-19, 56% of Canadians who are feeling confident in Canada’s real estate market are still likely to buy or sell.

“While COVID-19 lockdowns slowed Canada’s housing market at the start of a typically busy spring market, activity bounced back by early summer in many regions, including Vancouver and Toronto,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Despite the tragic impacts of the pandemic, our optimism in the strength of Canada’s housing market has always remained, and current market activity further exemplifies this. Many homebuyers are now exploring different neighbourhoods that better suit their new lifestyles, and real estate agents are getting busier and working more with buyers from different major cities.  According to our brokers and agents across the RE/MAX network, Canada’s fall market is expected to see spring market-like activity.”

Additional highlights from the 2020 RE/MAX Fall Market Outlook Report Survey:

  • 48% of Canadians would like to live closer to green spaces
  • 48% of Canadians say it’s more important than ever to live in a community close to hospitals and clinics
  • 33% of Canadians would like more square footage in their home and have realized they need more space
  • 44% of Canadians want a home with more outdoor space and personal amenities (i.e. balcony, pool etc.)

About the 2020 RE/MAX Fall Market Outlook Report

The 2020 RE/MAX Fall Market Outlook Report includes data and insights supplied by RE/MAX brokerages. RE/MAX brokers and agents are surveyed on market activity and local developments.

The Vancouver West housing market experienced a balanced market for most of 2019, with a shift to a buyer’s market in the spring. The Vancouver West market is expected to increase by 4% due to an uptick in buyer confidence returning to the market. Currently there are 4.5 months of inventory left on the market, as sales increase, we are beginning to see inventory levels drop so this is expected to be 15% lower in 2020.

The most influential factors impacting market activity in 2020 include supply, interest rates and how sellers price their homes. Higher prices are expected in 2020 due to increasing sales and reduction on inventory. Housing affordability continues to challenge first time buyers in the region when it comes to home ownership, with many opting to buy condominiums instead of detached homes.

The hottest neighbourhood in 2020 is Kitsilano for detached homes, and False Creek for condos. Both neighbourhoods are extremely well located with proximity to transportation, restaurants and community services as well as more affordable price ranges. The top neighborhoods in Vancouver West for sales include Kitsilano, Arbutus and Kerrisdale.

First-time and move up buyers are expected to continue to drive demand in 2020 with condos being the popular property type for first-time home buyers.

From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price.

“The drop in sales in key markets across British Columbia can be partially attributed to Canadians’ increasing difficulty in getting an affordable mortgage in the region,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “The situation created by the introduction of the mortgage stress test this year, as well as continually increasing interest rates, means more Canadians will be priced out of the market.

Click to read the full RE/MAX 2020 Housing Market Outlook Report.

Learn more about RE/MAX real estate franchise opportunities in Ontario-Atlantic Region and Western Canada.

The Vancouver East housing market is currently balanced, which is expected to continue into 2020 due to strong market activity in the region. The RE/MAX average sale price for Vancouver East is expected to increase by eight per cent in 2020.

Continued population growth and price increases are expected to boost the residential market in Vancouver East. Housing affordability in the region continues to be a concern, especially to young buyers affected by the stress test. Factors like densification in city centers and proximity to transit are expected to impact market activity.

The hottest neighbourhoods in Vancouver East for sales include Collingwood, Mount Pleasant and South Marine. The most popular property type is condominiums, with young couples and single millennial buyers driving the condo market. Move-up buyers drove the housing market in 2019.

From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price.

“The drop in sales in key markets across British Columbia can be partially attributed to Canadians’ increasing difficulty in getting an affordable mortgage in the region,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “The situation created by the introduction of the mortgage stress test this year, as well as continually increasing interest rates, means more Canadians will be priced out of the market.

Click to read the full RE/MAX 2020 Housing Market Outlook Report.

Learn more about RE/MAX real estate franchise opportunities in Ontario-Atlantic Region and Western Canada.

The post Vancouver Housing Market Outlook (Fall 2020) appeared first on RE/MAX Canada.



https://ift.tt/2E8OIHU
from RE/MAX Canada https://ift.tt/2QJJZz4
Kayley Jackson

Commentaires

Messages les plus consultés de ce blogue