Patrick Weeks Real Estate – 2021 YTD Highlights:
- Top 5 out of 14,000 Greater Vancouver Realtors
- Over 90 Homes Sold
- Over $160,000,000 in Total Sales
June Slows Down and Our Predictions for the Second Half of 2021
As we predicted in our June newsletter, the market as a whole saw a slight cool down in June compared with May and the previous Spring months. Despite our team having a record setting month of June (18 homes sold for over $40m in sales volume), the market in Metro Vancouver experienced a decrease in sales of 11.9% compared to the month of May. With that said, June’s numbers were still 18.4% above the 10-year June sales average, so the calmer pace needs to be taken with relativity in mind.
Sales activity is certainly one metric to consider, but real estate prices are typically what buyers and sellers are most concerned with. As one would expect with (relatively) softening demand, prices have begun to stabilize in June with a nominal 0.2% increase compared to May (for reference, May’s pricing was up 1.5% compared with April’s).
Overall the Vancouver market continues to be firmly planted in ‘Seller’s Market’ territory, but we are predicting that it will gradually shift to a more balanced market throughout the summer months as residents enjoy the summer weather with easing COVID restrictions and the ability to travel and entertain their friends and family.
Our sense is that this summer will be a ‘normal’ summer where the demand for real estate subsides and we enter into a more balanced market. We feel this will be an opportunity for our clients who are looking to purchase a home without having to participate in the frenzy and multiple offer scenarios that have been ongoing for over a year now. Getting back to a slower paced buying process where buyers can view a property, make an offer with subjects, negotiate the price, and have the luxury of time to perform their due diligence during their subject removal period.
With that said, inventory numbers in certain market segments and pockets of the city remain low, and we expect that new listings within those segments that are priced correctly will still experience a high level of demand as a result. New listings of move-in ready detached homes in desirable neighbourhoods remain few and far between, and we expect that trend to continue throughout the balance of the year.
The other looming factor that could be the next catalyst for our real market to go into another frenzie is pent-up foriegn demand and immigration. With the border restrictions easing this summer after over a year of closures, we are expecting increased activity later this year and into next year from pent-up foreign buyer demand and the 1,000,000+ new immigrants predicted to be coming to Canada over the next few years. The Globe and Mail article below published a few weeks ago is worth reading:
A new wave of buyers expected to hit B.C. real estate market
“Throughout the pandemic, home sales soared, and in some markets, set record prices. Industry insiders say that post-pandemic, the B.C. housing market is expected to boom again – driven by Canadians returning home and the federal government’s plan to bring in more than 1.2 million immigrants by 2023.”
As a result, we don’t anticipate this summer’s balanced market to last very long, as we typically see demand and market activity increase after the Labour Day long weekend in most years. If we also consider the pent-up immigration and foreign buyer demand that is likely to occur in the fall, our predictions are that the market will see another boost in the fall and winter months.
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