Year End Market Update 2019 – Be Prepared For Hot 2020 Market!

December Market Update Team Pospischil

Our year has ended on what could be the most positive note possible. Greater Vancouver is on the brink of our most impressive recovery to date. Following 2 years of a softening market thanks primarily to government intervention in the form of Foreign Home Buyers Tax, Vacant Home Tax, Speculation Tax, and the Stress Test, our market has been held back long enough to regroup and gather momentum and a pent-up demand that we have never seen the likes of.

Already over the past 6 weeks we have seen unparalleled activity in the sale of our listings with 5, 7, 9, 12, 13, 15, and even 23 multiple offers on single properties resulting in well above market sale prices. Yes, our marketing plan is certainly far more effective and strategic that your average real estate brokerage, but that coupled with our offer review strategy, and a new hungry market demand has yielded incredible benefits for our sellers these past couple months. We have generated some $25,000-$230,000 above list price sales making some very very happy clients.

And we are not the only ones witnessing this exploding market. If you read CMHC’s news release on October 28th “Metro Vancouver home prices could return to peak levels in a year: CMHC” there is strong data supporting a very fast and aggressive market recovery that will well surpass the peak 2017 levels. Sit back and fasten your seat belts because its already begun.

As you can see in the graph to the above, townhomes and detached houses on the eastside have passed well into a Seller’s Market over 2 months ago and rising steeply.

And as you can see to the graph below, even Vancouver’s westside detached and townhomes have jumped into a Seller’s Market. Overall the Real Estate Board of Greater Vancouver has seen a year-over-year increase in sales activity of 45% (47% up for detached houses, 40% up for apartments, and 56% up for attached homes). And if interest rates remain low, and tanks with red stars don’t roll down the streets of Vancouver, these sharp recover trends are more than likely to continue through 2020. Vancouver is once again entering the spotlight as one of the most desirable cities in the world to live in with clean air, clean water, great schools, strong economy (maybe even better in 2 years), and safe. Where else would you want to live . . . . really.

My prediction? Watch for a 20% increase in pricing over the next 12 months, and another 15% for 2021.