August is typically a slower month as many home buyers and sellers pause their real estate plans for summer vacations. But, 2020 has been full of surprises and the real estate market is not going through the typical seasonal trend.
Many buyers and sellers who put their real estate plans on hold during Spring have been returning to the market this Summer. Last month’s sale was up 40% (36.6%) compared to August 2019. Low interest rates contributed to the increased number of sales and creating competition in the market. Multiple offer situations are definitely not uncommon. Despite being in a pandemic, the benchmark price ($1,038,700) is up by 5.3% compared to this time last year (detached 5.7%, townhouse 4.4% and apartment 4.9%).
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.