Patrick Weeks Real Estate – 2021 YTD Highlights:
- Top 5 out of 14,000 Greater Vancouver Realtors
- Over 90 Homes Sold
- Over $150,000,000 in Total Sales
Record Setting Spring Market and Our Predictions for the Summer
There are two topics (leaving politics aside) that Vancouverites love to talk about — the weather and real estate. The conversations around weather often are based around complaints about too much rain, followed by complaints about it being too hot, and very little in between. June so far has been exhibit ‘A’ for this, as the first two weeks of this month felt more like January and this past week has seen nearly record high temperatures leading to ‘Special Weather Alerts’. Like the weather, Vancouver real estate over the past 15-20 years has had very few periods of stable or ‘normal’ activity: it seems we are either in a strong Seller’s market, or a strong Buyer’s market, and very little in between.
As we discussed in previous newsletters, the COVID-19 pandemic brought an unprecedented amount of activity in Metro Vancouver with the two main driving forces being people wanting more space (outdoor entertaining space and the ability to comfortably work from home) and historically low interest rates. The result of those two factors has been the busiest 12-month period we have ever experienced in our 18 years in the industry. But with Buyer fatigue setting in, the threat of interest rates rising, easing travel restrictions and more and more Canadians being vaccinated, what will the Vancouver real estate market look like this summer?
When we compare our team’s year-to-date performance numbers with the Real Estate Board of Greater Vancouver’s statistics, they are remarkable similar in terms of overall trends:
March was the peak of the market in terms of activity
April had a slight decrease in activity compared to March
May saw another small decrease compared to March
Prices continued to increase throughout the Spring based off of the MLS HPI Benchmark Price index
As we are only three weeks into June, we don’t have the REBGV statistics yet, but our team has already sold the same number of homes in the first three weeks of June than we did in March, and the dollar volume of those sales is 25% higher than in all of March, and we still have a week to go!
Until we get the June stats from the REBGV in early July, it is hard to know if our record-setting month is simply in our little corner of the real estate world, or if the trend is wide-spread throughout the market. But either way, we feel the level of activity this month is based on a few key factors:
Buyers and Sellers wanting to get their real estate plans wrapped up before the Summer and to be settled into their new homes before the Labour Day weekend in September.
Buyers and Seller anticipating a return to a ‘normal’ summer and having travel plans after feeling ‘trapped’ over the past 12+ months
Buyers locking in fixed interest rates at historic lows in anticipation of rates rising late this year or early 2022
Despite Buyer exhaustion and increased inventory throughout the past few months, our sense is that June appears to be the final ‘push’ for many households looking to make a move this year. With COVID cases steadily decreasing, the number of vaccinations increasing, and travel restrictions easing, we feel we are going to see the typical summer slowdown in terms of real estate activity. Unlike the Summer of 2020, where we experienced a very active market, we are predicting the market to take a breather this July and August while people focus on travelling, entertaining and spending time with friends and family.
With potentially decreased buyer demand along with decreased new inventory, this summer could see a ‘balanced’ market for the first time in recent memory. But as noted above, Vancouver’s real estate market is extremely dynamic and fluid, and if history has taught us anything, if we do see a balanced market this summer, it likely will not last very long!
If you’d like to discuss a game plan for your next purchase or sale, don’t hesitate to reach out to us. Our full service team of 6 and our combined 50+ years of experience allows our clients to be well looked after even in the busiest of markets.
We look forward to connecting with you soon. Your ongoing support and referrals are very much appreciated.
Kind regards,
Patrick Weeks Real Estate
Patrick Weeks PREC* – Partner & Lead Realtor
Devin Roch PREC* – Partner & Senior Realtor
Jenny Do – Realtor & Listing Manager
Matt Gibson – Realtor & Inside Sales
Noah Armstrong – Realtor & Pre-sale Specialist
Susan Jackes – Administrative & Client Care Manager
*Personal Real Estate Corporation