A report says that the “heady days of March and April” are over for the real-estate market in Greater Vancouver.
It also noted that the “tempered decline” going on will continue for a while.
This will due in part to the expected easing of restrictions brought about by the COVID-19 pandemic.
“Freedom is on the horizon and for many this will be a distraction from one of the few things that has been able to garner the attention of society over the last 15 months,” Dexter Realty said in its report Thursday (June 17).
The Vancouver company releases mid- and end-of-month reports that are authored by partner, managing broker and economist Kevin Skipworth.
The realtor wrote that markets typically slow down in the summer, when people travel.
“But with the easing of pandemic restrictions, more travel locally and the promise of travel abroad, attention will wane from real estate over the next two months,” Skipworth noted.
This may not be exactly good news for sellers wishing to catch a windfall from the strong demand for homes.
However, Skipworth also pointed out fewer listings are coming on the market.
And this means that prices aren’t going down in line with the decrease in number of homes being sold.
It’s a slightly different story for buyers wanting to get into the market.
“As with any absence, there is opportunity,” Skipworth noted.
“Those buying can perhaps take solace in less competition and those selling, similarly – less coming on the market,” the Dexter Realty executive continued.
So while that may be what summer of 2021 will look like, the fall market could be a lot different.
“As borders open, post secondary schools’ welcome students back in person, immigration starting up and the jewel that is Canada attracting those from beyond our borders, demand not seen in the real estate market since pre-COVID will emerge,” Skipworth wrote.
It may be recalled that in an April 6, 2021 report, Skipworth noted that “wild as the current Metro Vancouver” may be at the time, “it may be the calm before the storm”.
Skipworth was referring to a bigger boom anticipated with the return of foreign buyers and the full resumption of immigration to Canada.
“We believe there is one wild card yet to be played and it could shift the housing market into hyperdrive later this year,” Skipworth wrote at the time.
“We believe pent-up demand and a war chest is building and it could be unleashed on the Vancouver-area housing market later this year,” Skipworth also stated in his April 6 report.
In his new report, Skipworth noted that home sales from June 1 to June 15 totalled 2,028 in Greater Vacouver.
New home listings for the month reached 3,405 so far.
Skipworth noted that both sales and new listings as of mid-June are “off from the mid-point of May when there were 2,183 properties sold and 3,758 new listings”.
These are also fewer compared to April “when there were 2,402 properties sold and 4,078 new listings”.
The June numbers are also “off from 2,663 properties sold at the mid-point of March with 4,267 new listings”.
“June sales volume will be less than May, less than April and less than March,” Skipworth stated.