Balanced market conditions will continue, prices to rise 8%
The Vancouver East housing market is currently balanced, which is expected to continue into 2020 due to strong market activity in the region. The RE/MAX average sale price for Vancouver East is expected to increase by eight per cent in 2020.
Continued population growth and price increases are expected to boost the residential market in Vancouver East. Housing affordability in the region continues to be a concern, especially to young buyers affected by the stress test. Factors like densification in city centers and proximity to transit are expected to impact market activity.
The hottest neighbourhoods in Vancouver East for sales include Collingwood, Mount Pleasant and South Marine. The most popular property type is condominiums, with young couples and single millennial buyers driving the condo market. Move-up buyers drove the housing market in 2019.
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.