News: Vancouver Real Estate Market

The British Columbia Real Estate Association (BCREA) has released its 2020 Second Quarter Forecast. According to the release, a 21% decline in Multiple Listing Service® (MLS®) residential sales to approximately 61,000 units this year, after recording 77,347 residential sales in 2019. MLS® residential sales are forecast to increase by 45.3% to 88,500 units in 2021.

"The bright outlook for 2020 home sales has been upended by the COVID-19 pandemic and resulting recession," said Brendon Ogmundson,...

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver today is $1,028,400 according to The Real Estate Board of Greater Vancouver (REBGV). This is virtually unchanged from April 2020, a 1.4% increase over the last three months, and a 2.9% increase compared to May 2019.

"Home prices have been stable during the COVID-19 period," Colette Gerber, REBGV Chair said. "While we're seeing a variety of long-term projections for the market, it's critical to...

The Contract of Purchase and Sale (CPS) is one of the key documents used in a real estate transaction. The attached video created by the British Columbia Real Estate Association (BCREA) will help you understand and answer some of the common questions, such as:

• When does the process begin and when is the Contract of Purchase and Sale used?
• What do the terms in the contract mean?
• What information is included in the Contract of Purchase and Sale?

If you want to know more about the CPS form, feel free...

According to the British Columbia Real Estate Association (BCREA), there was a total of 3,284 residential units recorded by the Multiple Listing Service® (MLS®) in April 2020. This is a decline of 50.8% from April 2019.

The average MLS® residential price in BC was $737,834, a 7.8% increase from $684,430 recorded the previous year. Total sales dollar volume in March was $2.4 billion, a 46.9% decrease over 2019.

"We expected to see a sharp drop in sales for April as we confronted the COVID-19...

In April 2020, the residential home sales in the region totaled 1,109 as per the Real Estate Board of Greater Vancouver (REBGV). This is a 39.4% decrease from the 1,829 sales recorded in April 2019 and a 56.1% decrease from the 2,524 homes sold in March 2020.

"Predictably, the number of home sales and listings declined in April given the physical distancing measures in place," Colette Gerber, REBGV’s president-elect said. "People are, however, adapting. They’re working with their Realtors...

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...

In the past 40 years, the Canadian economy has had three recessions, each of them different in cause, depth, and duration. The 2020 COVID-19 recession is said to be deep, but will not last long when compared to past recessions. The one glaring similarity throughout these recessions is how the BC housing market has both endured and recovered successfully.

According to the current forecast, the Canadian economy is said to contract approximately by 4% in the first quarter of 2020, followed by a startling...

The BC Temporary Rental Supplement (BC-TRS) Program aims at offering up to $500 a month to assist renters and landlords during the COVID-19 pandemic. This is part of the province's $5 billion action plan and payments are made directly to the landlords of eligible households. Tenants should inform their landlords that they are applying for the BC-TRS.

What do you need to know about the program?

• The program will be a temporary rental supplement for April, May and June 2020.
• Applicants will only have...

The Bank of Canada economic update reveals one million job losses in the month of March, which exceeded anything we've experienced. Furthermore, the losses in April are said to be far higher compared to last month. All provinces are said to slip into severe recession this year. Here are some of the important statistics you need to know:

• 20% to 25% of provincial GDP are highly impacted industries like retail trade, transportation services (including airlines), education, arts and recreation, and food...

In March 2020, the British Columbia Real Estate Association (BCREA), reported a total of 6,717 residential unit sales recorded by the Multiple Listing Service® (MLS®). This is a 17.2% increase from March 2019. The average MLS® residential price in BC was $789,548, a 15.1% increase from $685,592 recorded the previous year. The total sales dollar volume showed an increase of 35%, to $5.3 billion over 2019.

"Provincial housing markets started the month very strong before the COVID-19 pandemic...

According to the Royal LePage House Price Survey and Market Survey Forecast released today, if the strict stay-at-home restrictions are eased during the second quarter Canada's aggregate home price could grow a modest 1% by the end of 2020, to $653,800. If the restrictions on personal movement continues through summer, the home prices to go down by 3%, to $627,900 year-over-year.

"The impact of COVID-19 on the Canadian economy has been swift and violent, with layoffs driving high levels of unemployment...

The beginning of March saw a steady buyer demand in Metro Vancouver's housing market and a levelling off of activity as the month went on and concerns about the COVID-19 outbreak intensified.

According to the Real Estate Board of Greater Vancouver (REBGV), residential home sales in the region totalled 2,524 in March 2020, a 46.1% increase from the 1,727 sales recorded in March 2019, and a 17.4% increase from the 2,150 homes sold in February 2020.

Sales from last month were 19.9% below the 10-year...

The Bank of Canada has lowered its overnight policy rate for the second time this month, taking the rate down a further 50 basis points to 0.25%. This is what the Bank considers as its effective lower bound and any further reduction in rates is not possible without potentially disrupting key short-term funding markets.

In addition, two new programs have been announced to ensure the continued smooth running of credit markets and to promote credit availability. First, the Commercial Paper Purchase Program...

UPDATED NOVEMBER 7, 2020:

Given the growth in COVID-19 transmission rates, it's important to be aware of the inherent risk in showings. These risks can differ depending on whether a home is vacant, owner-occupied, tenant occupied or a strata unit in a multi-tenanted building. Only after assessing risk can you determine whether showings are appropriate.

A maximum number of 6 people are allowed in a residence at any time. For smaller properties, this limit may be smaller to ensure safe physical...

The COVID-19 outbreak has caused a steep decline in interest rates, however, it is uncertain as to how severe the impact will be on economic activity. Considering the importance of tourism and our trade links with China, the magnitude of the impact is expected to be higher in BC. In addition, the Canadian economy also saw the collapse of oil prices and this makes the probability of a recession in Canada that much higher.

An unfortunate byproduct of recession is the loss of jobs and incomes, which...

The residential home sales in the region reached 2,150 in February 2020, a 44.9% increase when compared to the 1,484 sales that were recorded in February 2019, and a 36.9% increase from the 1,571 homes sold in January 2020 as reported by The Real Estate Board of Greater Vancouver (REBGV).

Last month's sales were 15.6% below the 10-year February sales average.

"Home buyer demand again saw strong year-over-year increases in February while the total inventory of homes for sale struggled to keep pace,"...

The aggregate price of a home in Canada increased 2.2% year-over-year to $648,544 in the fourth quarter of 2019 as reported by the Royal LePage House Price Survey. As we have seen in the third quarter, potential buyers are continuosly coming back to the real estate market.

Buyers stayed in the sidelines during the first half of 2019, trying to guage the potential impact of the federal mortgage stress test."The federal government has signaled that changes could come to the mortgage stress test mechanism...

The median prices of luxury homes in Greater Vancouver decreased by 6.7% year-over-year to $5,394,594 during the twelve-month period ending January 31, 2020. There was also a deacrese of 4.4% in Luxury apartment-style condominiums to $2,411,773.

Greater Vancouver luxury homes were showing year-over-year declines in median prices for both houses and condominiums over the twelve-month period. Since October 2019, a significant boost in luxury unit sales were observed and this is moving the market towards...

In January 2020, a total of 4,426 residential units were recorded by the Multiple Listing Service® (MLS®), as reposted by the British Columbia Real Estate Association (BCREA). This was an increase of 23.7% when compared to 3,579 units sold in January 2019.

The total sales dollar volume was $3.2 billion in January, which is a 35% increase over 2019. The average MLS® residential price in BC was $725,370, a 9.1% increase from $664,633 recorded the previous year.

"Housing markets in BC are...

According to the Real Estate Board of Greater Vancouver (REBGV), the residential home sales in the region hit 1,571 in January 2020. This is a 42.4% increase from the January 2019 sales of 1,103 and a 22.1% decrease from the December 2019 sales of 2,016.

The sales were at 7.3%, which was below the 10-year January sales average.

"We’ve begun 2020 with steady home buyer demand that tracks close to the region’s long-term average," Ashley Smith, REBGV president said. "Looking at supply, we...

What does it mean for B.C.?

The Greater Vancouver market saw signs of heading towards recovery in the fourth quarter, after a year-over-year decline. There was a 4.8% decrease in the aggregate price of a home in Greater Vancouver year-over-year to hit $1,107,719 in the fourth quarter of 2019. The aggregate price of a home in the third quarter of 2019, had decreased 5.2% compared to the same time last year.

Greater Vancouver's real estate market was fairly balanced in the fourth quarter according to...

The Multiple Listing Service® (MLS®) recorded a total of 77,331 residential unit sales in 2019, a decrease of 1.5% from the 78,516 units sold in 2018 as reported by the British Columbia Real Estate Association (BCREA). Furthermore, the total sales dollar volume was $54.2 billion, a 3% decrease from 2018. The previous year saw an average annual MLS® residential price at $711,564, when compared to $700,460, a decrease of 1.6%.

According to the BCREA Cheif Economist Brendon Ogmundson, "Housing...

Residential home sales in the region totalled 2016 in December 2019, an 88.1% increase from the 1,072 sales recorded in Dec 2018, and a 19.3% decrease from the 2,498 homes sold in November 2019.

Last month’s sales were 9.5% above the 10-year Dec sales average.

There were 1,588 detached, attached and apartment properties newly listed for sale on the MLS® in Metro Vancouver in Dec 2019. This represents a 12.9% increase compared to the 1,407 homes listed in Dec 2018 and a 46.8% decrease compared...

What does this mean for us?

Greater Vancouver house prices will see a stabilization in 2020. The aggregate prices for homes is forecasted to hit $1,125,200, an increase if 1.5% in 2020. For two-storey homes the prices are expected to rise to $1,460,700, a rise of 1.25% year-over-year. Median prices for condominiums is also said to rise to $666,900, a 3.0% increase by the end of next year.

According to Randy Ryalls, Managing Broker, Royal LePage Sterling Realty, "Sales have picked up significantly...

According to the British Columbia Real Estate Association (BCREA) report, there were 6,616 residential unit sales recorded by the Multiple Listing Service® (MLS®) in November. This showed an increase of 27.5% from the same month last year. The MLS® recorded an average residential price in the province at $746,939, an increase of 5.5% from November 2018. The total sales volume saw a 34.4% increase to reach $4.94 billion, compared to the same month last year.

"After several months of strong...

Home buyer activity has returned to more historically typical levels in Metro Vancouver, after a slow first half for 2019. According to The Real Estate Board of Greater Vancouver (REBGV), residential home sales in the region totalled 2,498 in November 2019, a 55.3% increase from the 1,608 sales recorded in November 2018, and a 12.6% decline from the 2,858 homes sold in October 2019.

"We started to see more home buyer confidence in the summer and this trend continues today," says Ashley Smith, REBGV...

Where does B.C. stand?

Kimberly situated in the Kootenay Rockies in British Columbia have had a surge of young buyers, contributing towards the demand of condominiums in the area. The average price of condos in the area increased to 9.8% year-by-year to reach $259,750 as the 12-month period ended on September 30, 2019.

"We are seeing young families return to Kimberley for the lifestyle offered by our four-season recreational region," said Darren Close, managing broker, Royal LePage East Kootenay Realty....

According to the British Columbia Real Estate Association (BCREA), residential unit sales totalled 7,666 as recorded by the Multiple Listing Service® (MLS®) in October. This is an increase of 19.3% from the same month last year. The average MLS® residential price in the province increased 5.1% from October 2018, at $724,045. Total sales were also up by 25.4% at $5.55 billion, from the same month last year.

"Most markets around the province are returning to a more typical level of sales...

According to the Multiple Listing Service® (MLS®)forecast, residential sales in the province are to decline 1.8% to about 77,100 units this year, compared to 78,505 residential sales in 2018. Residential sales on MLS® are forecast to increase 10.9% in 2020 and hit 85,500 units, just below the 10-year average for MLS® residential sales of 85,800 units.

"After a slow start to 2019, MLS® home sales in BC have embarked on a sustained upward trend since the spring," said Brendon Ogmundson,...

There has been a pickup in home sale activity in the Metro Vancouver housing market.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales of detached, attached and apartment properties reached 2,858 in October 2019, a 45.4% increase from the 1,966 sales recorded in October 2018, and a 22.5% increase from the 2,333 homes sold in September 2019.

Sales for last month were 9.8% above the 10-year October sales average."Home buyers have more confidence today than we saw...

Costumes and candy are some of the perks you get on Halloween, but did you know that Halloween also has an impact on your home's value!

“Anyone who has done renovations or rebuilt their homes know it can be a rewarding experience, but few people realise October 31 is the date when your efforts pay off,” says Assessor Tina Ireland. “That’s because October 31 is the date when any changes to your buildings or the use of your property are reflected in the upcoming property assessments....

It is hard to believe that it’s been 24 years since I moved to Vancouver. Like everyone, purchasing a home was something that I always wanted to accomplish.  As part of the process in finding my first home , I researched and learnt everything I could about buying real estate. I was lucky though. My father was a real estate agent. He helped guide me through the process to ensure I made the right decisions and protected my interests. Obviously not everyone has a father in the business they...

According to the British Columbia Real Estate Association (BCREA), sales in BC are forecast to rise next year.

Multiple Listing Service® (MLS®) residential sales in the province are expected to decline 9% to 71,400 units in 2019, after recording 78,346 residential sales in 2018. MLS® residential sales are forecast to increase 14% to 81,700 units in 2020.

"The shock to affordability from restrictive mortgage policies, especially the B20 stress test, will continue to limit housing demand...

photo by Aditya Chinchure

Decreased demand continues to allow the supply of homes for sale to accumulate across the Metro Vancouver* housing market.

Last month’s sales were 43.1% below the 10-year April sales average.

"Government policy continues to hinder home sale activity. The federal government’s mortgage stress test has reduced buyers’ purchasing power by about 20%, which is causing people at the entry-level side of the market to struggle to secure financing," Ashley Smith,...

In short, yes, absolutely! Home staging is critical to ensure your home looks and feels its best. Think of home staging like dressing a home. You dress it with complimentary "clothes" so it looks it's best.

Staged homes photograph better so when potential buyers see it online, or in print, they have already formed a positive opinion. Staged homes sell quicker, and because they sell quicker, they typically sell for a higher price. We highly recommend staging for all our properties and provide a free...

Metro Vancouver home sales were at the lowest levels seen in March in more than 3 decades.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales totalled 1,727 in March 2019, a year over year decrease of 31.4%.

Last month’s sales were 46.3% below the 10-year March sales average, the lowest total for the month since 1986.

"Housing demand today isn’t aligning with our growing economy and low unemployment rates. The market trends we’re seeing are largely...

A quick follow-up to last month's issue when I chose to focus on the primary reason for the current buyer's market, which generally is attributed to the B-20 mortgage stress test that the federal government’s banking regulator (OSFI) imposed.

In the interest of time and realizing most of my audience are busy with limited time to read a lengthy explanation on all the reasons, I chose to focus on the "primary" reason - which is by no means the only reason. Obviously the Feds had their reasons...

According to the latest stats released by the Greater Vancouver Real Estate Board, February sales were 42.5% below the 10-year sales average which saw an increase of supply from sellers and lower than average demand from home buyers.

Well priced homes are in Metro Vancouver are attracting interest, with increased traffic at open houses. Time will tell however if this trend leads to higher sales activity during the spring market.

Detached homes sales in February 2019 reached 448, a 27.9% year over...