North Vancouver housing market to remain balanced in 2021, prices to increase 3%
North Vancouver real estate is expecting a balanced market in 2021, with pent-up demand expected to continue. This demand will result in supply issues. Buyers in the region continue to seek out homes in rural areas, with multiple-offer situations in single family homes expected to persist into the new year. The average selling price in North Vancouver decreased to $1,146,605 in 2020 (Jan. 1 – Oct. 31), compared to $1,146,928 in 2019 (Jan. 1 – Dec. 31), a 0.02% decrease in average sale price. The RE/MAX Outlook for Kelowna real estate in 2021 is an increase of 3% to approximately $1,181,003.15 across all property types.
Who’s Driving Demand for North Vancouver Real Estate?
Move-up buyers are currently driving demand in the North Vancouver real estate market, which is expected to continue in 2021. These move-up buyers are looking for more space at home to include home offices, gyms and outdoor space for families. The most sought-after property type in the North Vancouver housing market are single-detached homes.
First-time homebuyers in North Vancouver are typically young couples looking for condominiums ranging from approximately $500,000 to $600,000. Rising prices seen in 2020 led to some hesitation from first-time homebuyers who were initially anticipating a slow-down. Low interest rates and new product coming onto the market will keep first-time homebuyers active in 2021.
The condominium market in North Vancouver is driven mostly by young couples and retirees/downsizers. The average sale price for condominiums in 2020 was $674,175. Condo sales are up over last year and this is expected to continue into 2021 as more new construction and presales come into the market. Rising demand for condominiums and low inventory is expected to carry into 2021.
The North Vancouver luxury market was popular with move-up buyers in 2020, with the typical starting price of $3,500,000. In North Vancouver the luxury market is limited. The market is very strong in the under $2,000,000 range with young family buyers. This is long term and is expected to continue in 2021.
North Vancouver’s Hottest Neighbourhoods
North Vancouver’s top-selling neighbourhoods in 2020 were Edgemont, Lonsdale and Moodyville. Edgemont is an established community with all the amenities sought out by families. Lonsdale and Moodyville are seeing an increase in new construction, particularly multi-family that meets the demands of young families, first-time homebuyers and empty nesters.
North Vancouver New-Home Construction
North Vancouver’s new-home construction market is multi-family and in areas such as lower Capilano, Central, and lower Lonsdale and Moodyville. The number of homes being constructed in North Vancouver is low for the amount of demand. New construction home sale prices are higher than resale market prices.
Canadian Housing Market in 2021
Canadians are on the move. RE/MAX isn’t calling this an “exodus,” but the re-location trend across the Canadian housing market is real, and it’s just one focus of the RE/MAX 2021 Housing Market Outlook Report. RE/MAX Canada anticipates healthy housing price growth at the national level, with move-up and move-over buyers continuing to drive activity in many regions across the Canadian housing market. An ongoing and widespread housing supply shortage is likely to continue, presenting challenges for homebuyers and putting upward pressure on prices.
Due to these factors, the 2021 RE/MAX 2021 outlook for average residential prices is an estimate of +4% to +6% nation-wide. Here’s the regional break-down:
Additional report findings include:
- 35% of RE/MAX brokers indicate that “move-over” buyers from other cities and provinces will continue to spark market activity in 2021
- 45% of RE/MAX brokers indicate that move-up buyers will likely be a primary driver of the housing market demand in 2021
- Half of Canadians (53%) are confident that Canada’s housing markets will remain steady in 2021
- 52% of Canadians believe real estate will remain one of the best investment options in 2021
“Despite the tragic impacts of the pandemic, our optimism in the strength of Canada’s housing market has always remained,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “While we’ve seen a significant shift in buyer preferences this year, we believe factors such as the supply issue, pent-up demand and historically lower interest rates will continue to fuel activity in 2021.”
Learn more about RE/MAX real estate franchise opportunities in Ontario-Atlantic Region and Western Canada.