Despite numerous concerns about the impact of the pandemic on the real estate market and other aspects of real estate, Vancouver was named the No. 1 market to watch in this year's review. How is this possible, particularly in light of the recent housing market downturn? There are many explanations for this, but the short answer is that, while Vancouver has been affected by COVID-19, it still remains a desirable place to live and do business. Even in the face of today's turmoil, this has helped to solidify its reputation as a haven for investment hence keeping the housing market up.
The housing market in Vancouver had a record-breaking March, with 5,708 homes sold, up 126 percent year over year and more than 70 percent over 10-year March trends. In the Greater Vancouver Area, home prices have started to rise again, with a 9% increase year-over-year to $1.12M for all property forms. Buyers and sellers also increased their operation as a result of loosening controls, hot weather, and increasing mortgage rates, which resulted in more sales and new listings. Stock, on the other hand, continued to fall in the GVA, increasing hopes for more price increases in the coming months.
This month, the top-line figure to watch is home sales, as activity across the GVA set new monthly highs. Home sales increased significantly across the board, with detached homes, townhouses, and condo apartments experiencing increases of 131 percent, 112 percent, and 129 percent, respectively. Although the initial decrease from COVID-19 last March exaggerates year-over-year comparisons, these statistics are still well above average. Seasonal fluctuations in operation and increasing mortgage rate FOMO are two potential causes of this increase. Buyers are looking to lock in their purchases and mortgages before prices rise even higher as mortgage rates rise from record lows.
Prices have also risen this month, with average sold prices for all property forms in the GVA reaching $1.12 million. Suburbs and freehold properties, like most other markets in Canada, saw the most growth, with detached property prices growing 17 percent year over year to $1.7 million. Townhouses, which are around half the price of detached homes, saw a 10% year-over-year increase to $872K. Condo apartments have remained relatively stable in comparison to other property forms, with just a 4% rise year-over-year.
All in all, Vancouver has been resilient against all the hurdles that came in its way, and now it seems like a good time to move forward with even better trends!
Need help? Talk with Paul Eviston, Vancouver's top realtor with 33 years of experience.