From the Office - June 2020

Some highlights from June: 
  • The move to houses is showing a sign of a trend in Metro Vancouver – North Vancouver house sales were the highest by month in that region in 2020 with 84, compared with 71 and 69 in February and March respectively
  • There are 3 months supply of houses and townhouses in North Vancouver – into a seller’s market with sales of condos in June up 100 per cent compared to May – don’t count out the condo market
  • There are 3 months supply of houses, and 2 months supply of townhouses and condos in Port Coquitlam – firmly into a seller’s market
  • There were 43 per cent more houses sold in West Vancouver in June compared to the same month last year with the average price up 23 per cent from last month
  • Sales and new listings in Richmond were at the same levels as June last year while other areas saw increases in both but condo sales in June were 113 per cent higher than May – again, those condos are still in demand
Once again there was an increase in the number of homes available in Greater Vancouver in June. At the end of June there were 12,145 homes for sale, compared to 10,771 at the end of May but still less than the 15,770 available at the end of June 2019 – a 23 per cent reduction in the number of homes available year-over-year. At the end of May there were 30 per cent less homes available compared to the previous year. More choice is available, but that’s also helping to create more home sales. Even with the increase in the number of homes available, it is significantly below the 15,342 average that we’ve seen for the month of June going back to 1995. It would be the expectation that after the halting of market activity starting mid-March there would be a sudden increase in homes coming on the market, but yet there is still a shortage or homes available.

Predicting Metro Vancouver’s real estate market has long been a fascination of many. Dire predictions make the rounds, but it’s been clear the strength of the market has prevailed. Of course there are economic storm winds ahead, and unknowns as to which path COVID-19 will take but we live in a pretty amazing place and the course of what has happened over the last 4 months is being noticed by many around the world. Our region has and continues to be a safe place to be. Property will always be an investment vehicle, home ownership will always be sought after and with each day, British Columbia continues to shine in the eyes of the world. And while logic would suggest one type of property or area that allows for more separation or that is less densely populated will draw significant activity, every property type and location is unique and will likely perform in ways many wouldn’t have anticipated. Far be it from Metro Vancouver real estate to follow predictability – it always has a surprise up its sleeve. 

“REALTORS® continue to optimize new technology tools and practices to help their clients meet their housing needs in a safe and responsible way,” Colette Gerber, REBGV Chair said, “Over the last three months, home buyers and sellers have become more comfortable operating within the physical distancing and other safety protocols in place.” 

East of Vancouver, the Fraser Valley Real Estate Board processed 1,718 sales of all property types on its Multiple Listing Service® in June, an increase of 113 per cent compared to sales in May and a 32 per cent decrease compared to the 1,306 sales in June of last year. Last month’s sales were 6.4 per cent below the ten-year average for June. There were 3,456 new listings in June, a 57 per cent increase compared to May and a 23 per cent decrease compared to June of last year. May finished with 7,063 active listings, an increase of 9 per cent compared to May’s inventory and a decrease of 17 per cent year-over-year. “It’s due to a combination of factors. Obviously, very low interest rates, pent-up demand from the previous three months when the market was on hold and the new CMHC rules that came into effect on July 1st making it harder to qualify for the mortgage insurance.” Chris Shields, President of the Fraser Valley Real Estate Board said. “We can’t predict how our market will continue to respond during COVID, but what we do know is that historically, over 80 per cent of Fraser Valley buyers move within our region and half purchase within their own community. People buy and sell for lifestyle reasons and currently, even during this uncertain time, conditions are favourable. The market is balanced, inventory is growing, and prices remain stable.”