West Vancouver housing market to cater to buyers in 2021, prices expected to increase 3%
West Vancouver real estate is expecting a buyer’s market in 2021. With COVID-19 restrictions limiting activity from foreign buyers, the region is expecting a shift back to local buyers driving activity. Low interest rates and low inventory are anticipated to make the greatest impact on the market in 2021. The average selling price in West Vancouver decreased 1% to $1,949,881 in 2020 (Jan. 1 – Oct. 31), down from $1,969,356 in 2019 (Jan. 1 – Dec. 31). The RE/MAX Outlook for West Vancouver real estate in 2021 is an increase of 3% to approximately $2,008,377.43 across all property types.
Who’s Driving Demand for West Vancouver Real Estate?
Move-up buyers are currently driving demand in the West Vancouver real estate market. West Vancouver is made up of larger family sized homes and luxury homes, which were the most popular property types in 2020. There was some hesitation seen by move-up buyers, as the West Vancouver market slowed down dramatically in late 2018 and 2019, so buyers watched pricing closely before making any decisions.
First-time homebuyers typically families searching for condominiums, although they don’t typically look to West Vancouver due to its higher price points. They are considered a marginal part of the overall market.
The condominium market in West Vancouver is primarily driven by retirees and downsizers. There is limited inventory and no new product coming on, so sales will remain steady as supply and demand dictates. This remains one of the main challenges for the West Vancouver housing market.
The West Vancouver luxury market has not been affected by COVID-19, with foreign buyers primarily driving the market. Due to international constraints and COVID-19 restrictions, activity from foreign buyers diminished drastically in 2020, which is expected to continue into the new year. The typical starting price for luxury properties in West Vancouver is approximately $4,500,000, and the demand for luxury homes is expected to continue to increase throughout 2020 and remain the same for 2021.
West Vancouver’s Hottest Neighbourhoods
West Vancouver’s top-selling neighbourhoods in 2020 were Ambleside, Dundarave and West Bay. The neighbourhoods are popular due to their proximity to amenities, walkability scores, beach access, and water views.
West Vancouver New-Home Construction
West Vancouver’s new-home construction market is very limited, with most product sold as presales through developers, limiting access to numbers. The number of new-construction homes being constructed in the West Vancouver market is low, with prices for new-construction coming out higher than resale home 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.