We don’t need the trusty crystal ball to view future real estate activity when we have economist, Brendon Ogmundson, from the BC Real Estate Association, who so accurately predicted our prices continuing to hold through May. Overall, the Greater Vancouver Real Estate Board’s multiple listing system has seen an almost 60% increase in inventory since April, while buyers have shown a surprising confidence in the market and have snapped up the more affordable properties. Pent up demand and unprecedented low interest rates can account for this.
Brendon looked back at previous recessions to show that the housing market always leads the way back to recovery, and more quickly than we would expect. However, the unknowns here relate to the fact that our economy was deliberately halted for the greater good, rather than poor business and finance issues, so much will depend on how quickly economic activity can rebound. All indications are that buyers and sellers are adaptIng to current Covid restrictions and moving forward.
Locally, from Burnaby east to Maple Ridge: most notably, we see Port Moody’s inventory of condos and townhomes steadily trending upwards with 100% sales ratio in the hot price band – $500,000 to $600,00 – leading to higher sale prices in that range.
Pitt Meadows also bucking the inventory trend with a significant increase and prices holding close to those in Port Coquitlam. Attached category in both New Westminster and Coquitlam showing more choices for buyers in May. Coquitlam detached home sales show that May buyers favored a lower price point than previous months – hot spot was between $900,00 and $1mil. While the number of detached home sales increased only marginally in May, sale prices were struggling with fewer than 2 in 10 homes selling.Looking at the future – it is back to economics 101 – supply and demand. Unbelievably low interest rates will continue to fuel demand, so we need that increased supply to create more choices for would be buyers in all categories.
Let us help to dispel any confusion with regard to your own specific location and home style. We are always happy to consult and advise…even when your timeline is vague and down the road – we believe in being prepared. For sellers – using down time wisely to prepare for a future sale will pay off. This is not our first rodeo and no real estate question is dumb, specially these days! So give us a call!
We remain your Generations Real Estate Partners – umbrella at the ready even in pandemic times.
Michelle Hawthorne, Scott Johnson, Sheila Francis, Ray Harris and Shane Goutsis