Vancouver Fall Market Update
This was a month for the record books – highest sales for the month of September on record. And yes, there were almost a record number of new listings that came on the market, but given the lack of properties that have been available, this was and is still needed to contain run away price growth.
There was an increase in the number of new listings in September, which was 25 per cent higher than the ten-year average for this month. As a result, at the end of September there were 13,790 properties for sale, compared to 13,511 at the end of August. The rate of increase in active listings slowed in September and will likely continue to do so moving through the fall.
While we look to the reminder of 2020 and a fall full of anxiety on where COVID-19 will take us, there is still a lot to be positive about. Yes, government debt has grown as stimulus and support is being injected into our economy but that’s what governments are supposed to do in natural disasters. When the lockdown started, savings rates were at all-time highs as the ability to spend money was for the most part locked down. But even today after economies opened up, savings rates are higher. And with more savings and all-time low interest rates, people are looking to real estate as a vehicle to put their money into. Not as an investment vehicle but they are buying into the market or upgrading their living situation. And going forward, a home will be even more important. More so than it ever was before.
“We’ve seen robust home sale and listing activity across Metro Vancouver throughout the summer months,” Colette Gerber, REBGV Chair said, “This increased activity can be attributed, in part, to lower interest rates and changing housing needs during the COVID-19 pandemic. While the pace of new MLS® listings entering the market is increasing, the heightened demand from home buyers is keeping overall supply levels down. This is creating upward pressure on home prices, which have been edging up since the spring.”
See sales stats infographics here.
Excerpt from Dexter Realty’s Kevin Skipworth, Broker/Partner/Chief Economist