2020 Greater Vancouver Real Estate - Year in Review
The Annual Summary
A tumultuous year around the world as we continue to work within a global pandemic. As a global real estate market we were all up in arms how this would play out. Major disenfranchising facts in Greater Vancouver: 1) As we depend on tourism $$ where are the tourists? jobs and business that depend on it. 2) International students & workers - they are gone? when do they return 3) Global foreign investors - how influential are they?
After the lockdown, in pure Greater Vancouver real estate fashion, we bounced back louder and more staunch then ever. Mere months after our own market correction, and a lockdown, we were ready to party. 6 weeks of pent-up demand, lifestyle changes demanding more living space, and years of built-up equity allowing flexibility for home owners.... they shopped, and shopped and are still shopping. Exceeding 10-year average sales benchmarks, townhouses emerged as the asset class of demand, and record low interest rates all have our real estate market perched at a 'peak' sellers market racing into 2021.
Jan – March
Off to the races! Fresh off of a 12month+ market correction sales volumes were up, most importantly Greater Vancouver was finally starting to see increase in prices in the 4% range over previous year monthly pricing.
March – end of April
This was our lockdown period. Showings of properties volume was decimated, although showings were still possible as the government of BC classified the real estate industry as an essential service. In April, sales volumes dropped 58% from expected sales volumes. Pricing plateaued without change.
May & June
Recovery happened quickly. May saw a surge of sales volumes up 34% from April totals yet still 54% below 10-year average. June sale tallies showed the entire world that Greater Vancouver real estate was back to normal re: sales volumes. We saw a 65% increase in sales from May’20 and exceeded June’19 sales by 17.6%! Prices remain plateaued without change.
July & August
This cemented the FULL COVID-19 recovery. Sales volumes reaching 20% range over 2019 totals and breached the 10-year monthly sales marks. Prices were seeing a 4.5% price increase over 2019. Townhouses and detached homes emerge as the asset class of choice due to Buyers leveraging equity created from successful years in the past and the ‘need’ for more space while working at home. Lifestyle needs become paramount in real estate decisions. Pent up demand from shutdown still credited with abundant demand.
September – December
Sales volumes consistently are in the 35-45% over previous year monthly sales volumes. 10-year averages are being surpassed by 30+ %. Pricing is now rising into the 5-9% ranges. Townhouses and detached continue as the leader under most demand. These assets being of higher price points than condos push collective avg sale prices higher than normal. Combined with further demand and limited supply, record low interest rates below 2% leave 2020 on the precipice of the HOT HOT real estate market we saw in 2016/2017. Get ready for insatiable demand as we return to our ‘normal’ in everyday society.