Before COVID-19 happened in mid march, 2020 looked like it was going to be a strong year. Sales in the first 3 months were 42% higher than in 2019. Sales decreased in March and April when social distancing measures kept buyers and sellers on the sidelines. Sales in May increased 34% and new listings increased 69% over April.
Prices have not been hit hard because sales and inventory remain low. (6.7 Months of Inventory = Balanced Market). It’s hard to predict what may happen in the coming months, but if May is any indication of what’s to come, June may be even stronger as more businesses are opening again.
I predict there will be an influx of products because sellers who have Airbnb and rental properties will eventually unload and cash out. Buyers are also more confident in purchasing due to low interest rates. However, unemployment rates remain high, so the market may not bounce back that quickly.
Overall, I think our real estate market is very durable because our economy was doing well prior to covid-19. We are dealing with a health crisis and not an economic or financial crisis.
Feel free to reach out to me if you have any questions about Vancouver’s Real Estate market.
Oakwyn Realty Downtown Ltd.