September 28, 2020
Pandemic Fails to Cool Eastside Detached Housing Market!
As the unprecedented year of 2020 moves into autumn, the COVID-19 pandemic has not slowed the recent demand for detached homes on Vancouver’s Eastside. While the spring ‘lockdown’ caused sales to drop, the number of houses listed for sale also dropped. Since then, homebuyers have been taking advantage of record low interest rates to snap up the reduced number of homes listed for sale.
According to Multiple Listing Service (MLS) statistics from the Real Estate Board of Greater Vancouver, 141 detached houses sold on the Eastside in July 2020. 118 sales were registered in August 2020. However, after Labour Day, and as schools began to re-open, homebuyers returned to the hunt. As we have gotten used to wearing masks, sanitizing our hands, and staying `socially distant’ , we still have lives to live. This means that people who have a reason to buy a home (upsizing, downsizing, job situation) are still in the market. Meanwhile, listing inventory continues to grow at a snail’s pace. As we go to press, we have less than 550 detached homes for sale in Vancouver East.
The Benchmark Price for a Single Family Detached home on the Eastside is now up to $1,502,700 as of the end of August 2020 (according to the MLS Home Price Index). This is up 10.1% from August in 2019. This is not surprising when some lenders are offering huge discounts from their posted mortgage rates.
In some cases, a 5 year closed mortgage can be found for under 2% to qualified buyers. While the economic picture is not all rosy, sometimes life just has to carry on, even in these complicated times.