May 6, 2020 – Market Update

What is happening in Real Estate?

You have been calling and emailing for updates, we want to answer your questions on Vancouver Real Estate, the impact of Covid-19 and forecasts by the leading industry experts.

BCREA examined the impact of various recessions and have provided projections of what to expect over the next 24 months.

Did Vancouver listen to the restrictions on our movement?  Let’s compare 7 major cities.

Social Distancing

When the BC economic forecast is negative this reduces spending, less economic activity can have a negative impact on our real estate market.  However, what is happening here is different than one might expect, due to our government response.

Vancouver cut its’ movement from over 80% to just over to 15% over the past five weeks.

What kind of impact does this have on our economy and most importantly our real estate market place.

BC Economic Forecast

GDP is down  to -4.1% the economy is shrinking. Experts anticipate this will quickly recover and we will experience a growth of 3.1%.

BC Market Forecast

Lower interest rates are a common response to a recession in order to increase access to borrowing and this stimulates the real estate market by enabling more buyers to purchase a home.

Mortgage Rates

Mortgage Rates

Will government reduce interest rates to the promised amount?

What we can learn from previous recessions and the year that followed?

The demand for real estate builds behind the dam and our shutdown is building up inventory and buyers for post Covid-19.

What happens the year after a recession?A dramatic increase is expected for new listings.  See the chart below which shows a sharp increase in new listings predicted this summer.

MLS Unit Sales

The time to list is now.MLS Unit SalesWe are selling properties each week as we have done every week.

MLS Average Price