Vancouver West to shift to buyers market in 2020, prices to increase 4%
The Vancouver West housing market experienced a balanced market for most of 2019, with a shift to a buyer’s market in the spring. The Vancouver West market is expected to increase by 4% due to an uptick in buyer confidence returning to the market. Currently there are 4.5 months of inventory left on the market, as sales increase, we are beginning to see inventory levels drop so this is expected to be 15% lower in 2020.
The most influential factors impacting market activity in 2020 include supply, interest rates and how sellers price their homes. Higher prices are expected in 2020 due to increasing sales and reduction on inventory. Housing affordability continues to challenge first time buyers in the region when it comes to home ownership, with many opting to buy condominiums instead of detached homes.
The hottest neighbourhood in 2020 is Kitsilano for detached homes, and False Creek for condos. Both neighbourhoods are extremely well located with proximity to transportation, restaurants and community services as well as more affordable price ranges. The top neighborhoods in Vancouver West for sales include Kitsilano, Arbutus and Kerrisdale.
First-time and move up buyers are expected to continue to drive demand in 2020 with condos being the popular property type for first-time home buyers.
From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price.
“The drop in sales in key markets across British Columbia can be partially attributed to Canadians’ increasing difficulty in getting an affordable mortgage in the region,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “The situation created by the introduction of the mortgage stress test this year, as well as continually increasing interest rates, means more Canadians will be priced out of the market.
Click to read the full RE/MAX 2020 Housing Market Outlook Report.