August usually slows down the real estate market as people take summer breaks from buying or selling. But 2020 flipped the script big time. That summer saw a jump in home sales like never before. After waiting out spring, lots of buyers jumped back in, pushing property deals up by almost 40% compared to the year before. The secret sauce was super low mortgage rates, which heated up the market and sparked bidding wars on many homes. Even with the pandemic shaking things up, home prices climbed to over a million dollars on average, showing a solid 5% rise from the previous year. Prices for single-family houses, townhouses, and apartments all went up, making the market hotter than a midsummer day. This shows how unexpected events can shake markets and create chances for smart buyers and sellers. Keep reading to catch some neat tips on making moves when the market surprises you.
Interestingly, we saw a 50% increase in sales in detached homes and townhouses, but only a 19% increase in apartments. This may be an indication that the apartment market is softening. This might suggest that people don’t want to live in high density places during the pandemic. More people are working from home which makes people want more space or a home office. Perhaps we may start to see more condo sellers and more detached home buyers.
The uncertainty of COVID-19 makes it challenging to predict what will happen in Fall. However, there is no doubt that the pent-up demand from the beginning of COVID-19, low interest rates and the general sense of safety of Vancouver real estate have added to sale activity.
Feel free to contact me if you have any questions about Vancouver’s real estate market.
Kim Lee PREC*
Oakwyn Realty Downtown Ltd.
P: 778-997-8938
E: hello@kimlee.ca
