It’s been a little rocky in the real estate market these past couple of years. Economic uncertainty, new governmental policies, tighter lending rules, and taxes after taxes – there were so many little factors that contributed to the gradual slowdown in the Vancouver market. But throughout 2019, something changed and we saw buyers return to the market willing and able to make offers. They were able to bring sales numbers higher to certain areas than what we’ve seen from 2018.
While all this is true and the sales market is experiencing change, we much keep in mind that supply still far surpasses demand. Overall, the average sales prices have been roughly the same to a year prior with some positive and negative deviations in certain areas.
What we saw from 2019
Let’s take a look back over the last 12 months to see how theses selected areas fared. The specific areas and the style/type of home within them were among the most desirable during the greatest upswing in the market in prior years. These areas included, Vancouver East by Main, Vancouver East by Fraserview and Burnaby South by Metrotown. Believe it or not, they are still in demand today, though with more selection and less pressure on buyers. Sellers have found that they need to offer more flexibility in pricing and take more care to present their homes in the best light possible during the listing period.
Vancouver East – Main
Main Street is effectively part of the Downtown Eastside and is also part of Chinatown. Main Street is considered the core of the Mount Pleasant neighbourhood between East 2nd and east 16th avenues. The area saw more influence from immigrants in the 20s and 30s, but is now known for a younger and hip demographic. It is an area swarmed with businesses from cafes and grocery stores to pubs and independent media stores.
Vancouver East – Fraserview
Sitting in the south eastern part of Vancouver, Fraserview is made up of predominantly single-family homes and new condo and townhome developments. It is a very multicultural diverse neighbourhood with easy access to schools, shops and recreation.
Burnaby South – Metrotown
Holding one of Greater Vancouver’s major shopping centres, the Metrotown neighbourhood is a great place to experience shopping, life and culture. A 2011 study revealed that over half of the population in the area comprised of immigrants making the neighbourhood a very diverse and friendly place.
What saw significant change
As we said before, there are so many factors that play into the effect on sales prices. The areas above are only a small selection of areas that had significant changes in sales volume or average sales price. The things that influenced the sales included location, types of housing, and the number of new homes obtaining occupancy permits to list a few. From our perspective, there is a clear indication that people are seeing value in making purchases now. Whether this is enough upward pressure on price remains to be seen. We mentioned before that there is an abundant of supply in inventory and there might even be more to come. Sellers and buyers alike are still waiting on the sidelines to see how the market will shift and if it’ll do so in their favour.