The year was 2020…
The Metro Vancouver real estate market had begun to take off and all signs were pointing to robust activity. Then came the pandemic. The Spring market was wiped out: sellers didn’t want people in their homes, and buyers were hesitant and unable to go out and view homes. Sales came to a grinding halt…
…for two months. Yes, March and April saw far fewer sales than a normal Spring market in BC, but that was about as long as it lasted. As the public became comfortable with the ‘new normal’ involving enhanced safety precautions, the real estate market fired up again and all of a sudden, everyone needed more space. ‘Sizing up’ became the name of the game for many, as condos were fled to avoid the health concerns of shared common areas.
Fast forward to the beginning of 2021.
The much-anticipated vaccine rollout has begun and interest rates remain low after a year of decline. Leading up to the new year, September and December posted their highest sales volumes for each respective month ever. In October and November, the second highest sales volume each month had seen were posted.
So where are we going from here? With an optimistic outlook towards the overall health of the community, buyers are beginning to warm up to the idea of city centre and condo living once again. Contributing to that, the uptick in prices in the detached and larger home sector has left affordability for many limited to condominiums.
2021 is beginning with overall housing inventory at similar low points seen throughout much of 2016 - 2018, when the market was at its hottest. Interest rates have remained historically low. With global health and safety returning gradually throughout the year, immigration and travel will follow. In other words, there are many indicators pointing towards a strong selling year ahead. The level of demand for larger spaces will likely be a little calmer throughout the year, but this may mean a buyer shift towards condominiums resulting in competition and increased upward pressure on prices in the urban centres and Downtown core. We’ve started to see it already towards the end of 2020, and it wouldn’t be all that surprising to see the return of more multiple offer scenarios and bidding wars throughout Metro Vancouver.
Should the market follow this path, those who have recently purchased or those who are able to do so earlier on in the year will likely be pleased with their decision towards the end of the year.
And now for the caveat
The lead-up to 2020 showed a similar trend and despite the pandemic, ultimately resulted in substantial value gains for many who purchased townhouses, houses, and duplexes earlier on in the year. The condo market remained relatively stable throughout the year. Predictions are fun, but similar to the massive twist of 2020 known as COVID-19, anyone who guarantees results for short-term investments is balancing their reputation on luck. As with any major investment, with real estate being at the forefront of the pack, the best way to ensure a positive return is looking towards a longer term. It’s great to see quick returns, but these should not be relied upon for wealth. Whether it is your principal residence or part of an investment strategy, buying a property should always be planned with the ability to hold.
If you are looking to learn more about the 2021 market and how you can buy or sell your home this year, you can email me anytime at adil@adilkhimani.com.
Thank you for reading,
Adil