The Greater Vancouver region includes multiple municipalities including the cities of Vancouver, Richmond, Surrey, and Burnaby. With a population of about 2.4 million, Greater Vancouver is Canada’s third-most populous metropolitan area. The City of Vancouver is the eighth largest among Canadian cities.
In spite of the doubts and fear regarding how the pandemic will affect the real estate market, Vancouver still ranked as the number one market to watch in 2021.
How is this possible, considering the decline in the housing market in past years?
Like the rest of the world, Vancouver felt the effects of COVID-19. However, it continues to be a beautiful place to live and conduct business, which has strengthened its standing as a sound place for investing even under today’s uncertain conditions.
The State of the Vancouver, B.C. Real Estate Market
House prices in Vancouver in the area went up at a fast rate in the past few months, forcing many potential buyers to back out of the housing market. People intending to buy a home may wait for possible shifts in the current market trend, but there’s no assurance that prices will go down by the end of the year.
People who are planning to sell a home at this time will be encouraged because real estate prices are at all-time highs and want to take advantage of selling during the pandemic.
Real estate in Vancouver is affected by various factors as discussed below.
Among the many people who want to live in Vancouver are immigrants who have played a major part in feeding the demand in the city’s real estate market. While the pandemic has greatly decreased the number of applicants approved for permanent residency in Canada, forecasts by the Conference Board of Canada (CBoC) indicate international migration to Vancouver will increase annually over the period covering 2021-24.
Vancouver Real Estate Trends
The Vancouver market, as in other cities, is going through some uncertain times and changes. The high rate of unemployment, recession and the ensuing slackening of restrictions are currently the main causes of uncertainty for real estate values.
As an example, Vancouver’s retail sector is experiencing the same changes as in other places in the country. While property value and sales have been unusually flexible, certain categories aren’t doing as well, like luxury condominiums.
Should You Buy a Home in Vancouver this Year?
An accurate answer may be hard to find due to the shifting market trends. While prices have been rising, there could be some risks involved. It looks doubtful that prices in December will be less than they are today.
There is still an upward trend in market value, but efforts to contain the Coronavirus are raising prices. Once restrictions are removed and vaccinations are done, prices will likely ease up in the latter part of this year.
Nonetheless, the yearly real estate cycle normally favors home buyers in late summer. The unpredictable factor is the Coronavirus. At this point, it is hard to define how heavy its impact will be on the market.
If you are thinking of buying, be sure to get the best deal and stay as close as you can to market value. An old yet reliable rule of thumb regarding financing: don’t spend more than what you can pay for.
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