VIDEO: Vancouver Real Estate Market Update – June 2021
Our economy is steadily opening back up! As we discussed last month, with the supply pouring out, market has certainly peaked and is holding quite steady. However, demand seems to be leaning back towards the typical pre-covid trends, with a slight lull in the summertime as more people are out enjoying the sun rather than focusing on Real Estate. Below you will see comments from the Real Estate Board of Greater Vancouver, and my analysis of the market being on the ground daily.
From the Real Estate Board of Greater Vancouver:
VANCOUVER, BC – June 2, 2021 – The Metro Vancouver* housing market saw steady home sale and listing activity in May, a shift back from the record-breaking activity seen in the earlier spring months.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 4,268 in May 2021, a 187.4 per cent increase from the 1,485 sales recorded in May 2020, and a 13 per cent decrease from the 4,908 homes sold in April 2021.
“While home sale and listing activity remained above our long-term averages in May, conditions moved back from the record-setting pace experienced throughout Metro Vancouver in March and April of this year,” Keith Stewart, REBGV economist said. “With a little less intensity in the market today than we saw earlier in the spring, home sellers need to ensure they’re working with their REALTOR® to price their homes based on current market conditions.”
“With sales easing down from record peaks, a revised mortgage stress test that reduces the maximum borrowing amounts by approximately 4.5 per cent, and the average five-year fixed mortgage rate climbing back over two per cent since the beginning of 2021, we’ll pay close attention to these factors leading into the summer to understand what affect they’ll have on the current market cycle,” Stewart said.
Analysis – We have seen a slightly more saturated May than April, however prices are still holding. We are starting to see the trend heading back towards pre-covid conditions, with a typical lull in the Summertime when families tend to either travel or spend more time together outdoors rather than focusing on Real Estate. This happens as most of us are vaccinated and the economy opens back up. However, I think that “space” is and will continue to be a leading factor in buyers’ considerations for new homes after this past year and a half.
We are seeing the reduction of multiple offers and subject free offers in the marketplace. So definitely more of a balanced market than the last few months. If you have been waiting on the sidelines to buy, now is the time as we are predicting the fall market to come back (busy September to December).
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