Well, we didn’t expect a pandemic, but finding ourselves in the midst of one, we mistakenly relied on history as an indication of the future of real estate during Covid-19 times. Using the model of previous recessions, where listings spiked and desperation fire sales resulted, our negative supply hit us as the first shock, followed by a rash of sales from the pent up demand dating from a low Spring of isolation.
The housing recovery was nothing short of remarkable aided enormously by the Bank once more lowering the overnight rate, giving us unprecedented low rates and…. Canadians had savings. Despite forecasts otherwise, the economics rule 101 kicked in – that of supply and demand. Both the negative supply and an overwhelming mid pandemic demand took us by surprise. Last year listings were 30% below normal while demand was 60% higher. The results have been an upward trend on prices with detached sales being the highest for 5 years. Turns out that buyers spending more time at home, many actually working from home, want more space inside and outside and are declining higher density.
Brendon Osmundson, economist for the B.C. Real Estate Association, presented a potted history during a webinar looking at our economic recovery and future outlook. He was well researched and gave some sensible reasons for future optimism.
First and foremost was the vaccines coming our way (hopefully), followed by post pandemic consumer spending, strong trade and aggressive immigration policy, major infrastructure spending, continuing low interest rates and Canadian savings.
While many Baby Boomers had their plans to downsize thwarted last year, they will implement those plans when the Covid fear has lessened, especially as their detached home sales are currently a sure thing.
So…real estate is always interesting, never more so than in 2020. There are constant surprises and we’re ready and optimistic for an upbeat market this year.
DID YOU KNOW that in 2019, 61% of homebuyers were female? The rate tripled between 1981 and 2016, then steadily increased. After seeing what a difference a stager made on the impact of their previous home at time of sale, these female buyers also hired professionals, including designers, to update their new homes.
A female journalist recently reported that she didn’t plan on buying a home in 2020, but neither did she plan on being in the midst of a pandemic! That sentiment just about sums up many of our clients this year!
Have a great weekend. We are always happy to talk real estate and tailor our discussions to your needs. That’s how we keep you covered, whatever the climate brings, continuing in that tradition of trust and caring.
Generations Real Estate Partners:- Michelle Hawthorne, Scott Johnson, Sheila Francis, Ray Harris and Shane Goutsis.