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Reopened borders will lift Vancouver condo sales in 2021

Detached Homes are seeing quite an insane flurry of activity this season. Multiple offers, Final prices are over asking listing price and a veritable sellers market is what we continue to see.

How long do we think this is going to last, is anybodys guess, as long as Inventory continues to be scarce.

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In recent economic commentary, Central 1 Credit Union said that the region spanning Metro Vancouver and Abbotsford-Mission recorded 5,124 sales last month, up 61 percent from December 2019 and 18 percent from December 2015’s total, the previous record holder.

Will we see an end to this?. If I had a crystal ball, I could give you an answer but until inventory levels rise…there’s going to obviously be pent up demand for detached homes.

As was the case throughout the second half of 2020, it was single-family homes that stole headlines in December as sales continued to surge on the back of buyer preferences shifting toward larger spaces and rock bottom mortgage rates that motivated purchasers to jump into the market.

What about Condos?. How are they selling? According to the MLS ( See Graph Below)

As at December 31, 2021. there were 4310 Condos available on the Market. 1235 New Listings.

Compare that to 2285 Detached Homes with 765 in New Listings

The condo market is more sensitive to the border closure, with a lack of international students and severely depressed immigration numbers playing a bigger role in sales activity in that segment.

If international students return in significant numbers in 2021 and immigration rebounds, as many expect it will, the region’s condo market will be a major beneficiary.

There is currently reasonable inventory in the market and selling at a more stable pace. Below is a graph of the number of condos in the MLS.

TOTAL NUMBER OF CONDOS

SALES PRICE

NUMBER OF DAYS ON THE MARKET

Analyzing the December sales figures, the increase in active listings in the downtown market already started to move the needle in pushing condo sales activity higher. Condo sales were up 7.5 percent in December compared to the previous month, according to the Real Estate Board of Greater Vancouver.

“We will see more activity in the [condo] apartment market as 2021 continues and vaccines become more and more available. As activity in business and events come back so too will the desire to live close to the action,”