According to the latest Royal LePage report, the real estate market in Vancouver is slowly recovering for luxury homes. This particular market has been in a slump over the last couple years. So not only is this good news but it is also interesting that the market is recovering during a pandemic.
The report notes that the recovery is being seen both in price increases and with an increase in demand. Released last Wednesday, the report indicates that properties over $5 million are seeing price increases. The report indicates that in mid-March, around the time of the COVID_19 pandemic onset, the prices of luxury homes rose by 3.9 percent, bringing home selling medians above 4 million dollars.
With equity being recovered we can easily understand why we are seeing these price gains. There has been a sustained correction brought on by low sales and price softening and this is causing equity to recover. With all of that, consumers are now regaining their confidence as more people are settling into the “new normal”.
We anticipate that as long as the interest rates remain low and the economic conditions continue to be stable, the demand for luxury properties will continue to recover for the remainder of the year.
Buyers who had previously taken advantage of price softening and had the opportunity to get luxury homes below $4 million should be rejoicing right now. Others probably are mad they didn’t take the opportunity. These opportunities will be getting exceedingly harder to find. This is because the gap between asking and selling prices is currently narrowing for homes that are priced over $5million. But there are quite a number of options for buying to those who are motivated to buy.
What This Means for Offshore Buyers
Meanwhile, Metro Vancouver is still on top for luxury properties for offshore buyers. Many marketers note that COVID-19 is causing this stimulation of demand for “safe havens, this is good news as well since these numbers were down as far back as two years before the pandemic. Prosperous buyers are also looking for discounts thanks to the pandemic.