Canada's aggregate home prices are predicted to grow 1% by the end of 2020 in a best-case scenario. If the restrictions remain in place through late summer, a national home price decrease of 3% is expected by the end of 2020. In the first quarter of 2020, the aggregate home price in Canada climbed 4.4% year-over-year.
Where does Greater Vancouver stand in all of this?
During the first quarter of 2020, the aggregate price of a home in Greater Vancouver decreased by 2.1% year-over-year to $1,083,166 despite tightening inventory and a surge in sales.
There was a 1.1% decrease year-over-year to $1,402,395 in median price for a two-storey home. The median prices of condominiums and bungalows saw a decrease of 2.5% and 4.2% to $636,012 and $1,182,420, respectively.
"While the region had not quite returned to the 10-year average in home sales, the Greater Vancouver housing market was on a path for a vibrant spring market. We were seeing consumer confidence grow from the healthy demand seen in the entry-level segment that was extending upwards through the mid-range properties. We expected this upward trend to continue," said Randy Ryalls, managing broker, Royal LePage Sterling Realty. "Amid COVID-19 concerns, Greater Vancouver’s real estate activity began to slow in mid-March. While we do not know the duration of the pandemic, demand is still there and waiting for regular market activity to resume."
In the City of Vancouver, the aggregate price for a home rose 1.0% year-over-year to $1,245,608 in the first quarter of 2020, while the price of a bungalow and condominium declined year-over-year during the same period.
Greater Vancouver may see a year-over-year gain of 0.5% to its aggregate price by the end of 2020, rising to $1,086,800, if business activity resumes by the end of the second quarter. On the other hand, a decrease of 2.5% year-over-year in aggregate home price, to $1,054,400 is predicted if business activity resumes in late summer 2020.