Vancouver Real Estate Market Update - December 2020

Vancouver Real Estate Update - December 2020
We’re Back!! Well technically we never went anywhere, Covid and all that, but we’re back to the weekly blogs. What better way to start off the new year with a sexy topic. Say it slowly now ….

“ The Vancouver Real Estate Update - December 2020”
WOW, time to compose ourselves! We’re all aware 2020 had its ups and downs, not just in real estate, but a variety of topics of course. But nonetheless, we saw Real Estate rally heavily and make a strong push through the last half of the year.

December continued our journey down ‘the tale of two markets’. In which we saw, frankly, conflicting numbers between Metro Vancouver, and the various specific markets.

So overall, Sales in December 2020 reached 3,093. Whereas December 2019 had a sales total of 2,016. That’s a whopping 53.4% increase!
These were actually the highest numbers ever for December on record. However much it pains me to say this, as you all know by now it means nothing, it was 57.7% above the 10-Year Average. Once again, this means nothing in terms of specific market value/climate, but we include it as we aim to please those of you who can’t get enough of this particular stat.. You. Are. Welcome!

Newly listed properties were up by 51.7% vs December 2019, and down 40.8% vs. November 2020. The reduction in inventory is very common this time of year, and the usual trend we see in Vancouver. But the reduction in inventory is actually what makes the market ‘appear’ busier. If you look at Vancouvers’ East and West side, you’ll notice the buyer demand stayed relatively similar over the last few months, the reduction in inventory just meant there was less to choose from so the available listings were getting more attention. As opposed to a sudden peaking of home buyer demand.
This usually then works the opposite way as we get further into January with more and more people listing their homes again now the holiday period is done.

With Detached housing reaching a benchmark pricing of $1,554,600, that’s a 10.2% increase vs December 2019, houses are becoming more and more out of budget for larger groups of people. This forces the eyes to move to attached homes. As is the cycle of real estate.
With vaccines now being carried out, it’s safe to say a lot of those who were uncomfortable living in a Strata scenario, as well as those working from home and going back to the office, will start to return to the ‘more normal way of life’ in the coming months. For this reason, coupled with the rising prices of detached homes, we’re putting our bets on condos and townhouses this year. We’ve already seen price adjustments downwards across the board on these types of properties, and as we start to get back to normal life, you’ll find some really good deals out there, especially for investors. In fact, our personal opinion is AirBnB/Short Term Rentals will be going insane once the restrictions are lifted! 

Happy New Year to all of our fans out there who tuned in to follow us during 2020. We’re looking forward to a kick ass year this year, and can’t wait to bring you all that is Vancouver Real Estate!

Until next week,
Jay Mcinnes
T: 604.771.4606

Ben Robinson
T: 604.353.8523