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COVID 19 and the North Vancouver Real Estate Market - July 2020


 

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COVID 19 and the North Vancouver Real Estate Market  - July 2020

I often cringe when I read articles about the real estate market in our local newspapers, especially articles about national real estate market forecasts.  The Canadian Mortgage and Housing Corporation (CMHC) recently forecasted the “Housing Market will see a historic recession in 2020”.  They cite a number of reasons related to COVID 19 including job losses, decreased immigration and lower housing starts.  They are calling for a decline in sales and prices and don’t anticipate a recovery until 2022.  In most cases what they say has little to do with what is actually happening especially when it comes to local real estate markets.

What is actually happening?

I spoke to a friend who worked for Immigration Canada and is now an immigration consultant.  I asked her how COVID 19 was impacting immigration to BC, and about the predicted decline in immigration. She sees no decline in immigration now or in the future.  The immigration application process is a 6 to 18 month process and people are not withdrawing applications.  BC remains a very attractive place to live and if anything has become more attractive because of BC’s COVID 19 health record.   Many of these immigrants are home buyers.  She could see a decline in short term work and student visas but most of these people are likely looking for rental accommodation.  She noted that any new immigrants must quarantine for 14 days.

Another factor is what is happening in Hong Kong.  There are currently 300,000 Canadian citizens living in Hong Kong.  Over the past year I have seen an increase in activity with Hong Kong Buyers in North Vancouver.  Based on the current situation in Hong Kong this trend is likely to continue.

The North Vancouver real estate market is alive and well.  Back in March I talked about how affordability was returning to the market place because of lower interest rates and prices dropping over the past 3 years.  We saw the market take a COVID pause from mid-March to the end of April.  Since then the market has really picked up, and June 2020 sales surpassed June 2019 sales despite lower inventory levels.   Go to link for your June 2020 North Vancouver Market Report:  https://www.pixisites.com/sitefiles/1321/library/june_2020___north-vancouver.pdf

Low interest rates are driving Buyer demand and we are seeing multiple offers at many price levels across all categories, especially in the $1 - $1.5 million North Vancouver housing market.  We are consequently seeing home prices increase across all categories (see table below).   Interest rates are forecast to continue to remain low for the next two years.  It has been my experience that low interest rates drive Buyer demand.  Buyers’ are still subject to the 2% stress test however, after being sidelined for two years young Buyers are back and driving the current real estate recovery.  A real estate article in the Province on July 6th aptly described a robust Vancouver real estate market in June, and closed by saying “Steep price declines predicted by some pundits failed to materialize despite the disruption caused by COVID 19.”

 

North Vancouver Real Estate

Type

Jan-Jun YTD

2020

Jan-Jun YTD

2019

% Change

Sales

Detached

337

382

-11.8%

 

Attached

169

173

-2.3%

 

Apartment

470

430

+9.3%

 

 

 

 

 

Medium

Detached

$1,630,000

$1,551,000

+5.1%

Selling

Attached

$1,039,500

$1,010,000

+2.9%

Price

Apartment

$642,000

$616,250

+4.2%

 

Stay safe and healthy.

Buying, Selling or investing in residential real estate give me a call.  Friendly introductions always welcomeJ

 

Jeff Mulock    REALTOR®

Sutton Group West Coast Realty

www.jeffmulock.ca

(C)  604-512-2477

[email protected]

 

 



New Listing 403 - 3205 Mountain Highway, North Vancouver, BC


R2470122 - 403 - 3205 Mountain Highway, North Vancouver, BC, CANADAView my new listing for sale at 403 - 3205 Mountain Highway, North Vancouver and currently listed at $819,999.

Rarely available TOP FLOOR 2 bed 2 bath southern exposure condo at Mill House in the heart of Lynn Valley. Constructed by renowned builder Marcon to Green-Gold Level standards, fully rain screened with remaining new home warranty protection. Interior designed by Gannon Ross & features open floor plan with bedrooms on either side of the unit, 12' ceiling in the living room, 9' ceilings throughout, s/s appliances, quartz counter tops, laminate flooring, tiled bathrooms & a spacious balcony. 2 side/side parking spots close to elevator & over-sized secured storage locker. Building amenities include 2 electric vehicle charging stations, car & dog wash area, bike storage & large amenity room. Pets & rentals allowed. Steps to schools, shopping, restaurants, library & recreation. Call for appt.

Recently Sold Listing 1660 RALPH STREET, North Vancouver, BC


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New Listing 871 Hendecourt Road, North Vancouver, BC


R2460995 - 871 Hendecourt Road, North Vancouver, BC, CANADAView my new listing for sale at 871 Hendecourt Road, North Vancouver and currently listed at $1,299,950.

Relax & enjoy this completely renovated 2,122 sq ft townhouse in Whistler-like setting. This 3 bed 4 bath home went through a complete make-over in 2016. Kitchen features white cabinetry, white quartz counter tops, s/s appliances, gas stove/oven & brick accents. All bathrooms were updated including the amazing spa-like 5 pc. master ensuite with heated floors. Flooring throughout the home was replaced with high end laminate & tile. Relax on the 250 sq ft. partially covered deck or backyard patio. This is arguably the best location n the 24 acre wooded Laura Lynn development with equestrian centre. This is an end unit at the end of a private road situated close to the salt water pool, club house, tennis courts, trails, creek and pond. Minutes to schools &LV Centre. Call for your appt today!

Recently Sold Listing 310 - 131 W 3rd Street, North Vancouver, BC


R2455590 - 310 - 131 W 3rd Street, North Vancouver, BC, CANADAI have just recently sold this listing at 310 - 131 W 3rd Street, North Vancouver.

New Listing 310 - 131 W 3rd Street, North Vancouver, BC


R2455590 - 310 - 131 W 3rd Street, North Vancouver, BC, CANADAView my new listing for sale SOLD at 310 - 131 W 3rd Street, North Vancouver and currently listed at $474,950.SOLD

Large ONE BEDROOM PLUS DEN in the heart of Lower Lonsdale. Spacious open lay-out with 9 ft. ceilings, ceiling fan, hardwood flooring, crown moldings, gas fireplace, INSUITE LAUNDRY, contemporary kitchen and pantry. Walk around in bare feet and enjoy the radiant floor heating. Includes one underground parking and large storage locker (6'3(w)x 9'3(d)x 6'3(h). Close to everything; transit, shopping, dining, Starbucks, recreation and all that lower Lonsdale has to offer. Maintenance fee includes Shaw cable and internet (cost $85 per month). COVID protocols in place for showings. See floor plan and virtual tour for more information. Call today for your appointment.

Recently Sold Listing 855 E 13th Street, North Vancouver, BC


R2448196 - 855 E 13th Street, North Vancouver, BC, CANADAI have just recently sold this listing at 855 E 13th Street, North Vancouver.

New Listing 855 E 13th Street, North Vancouver, BC


R2448196 - 855 E 13th Street, North Vancouver, BC, CANADAView my new listing for sale SOLD at 855 E 13th Street, North Vancouver and currently listed at $1,350,000.SOLD

Well maintained 5 bedroom, 2 bath family home in Grand Boulevard area. 50 X 147 Lot with southern exposure in the backyard. Covered 20'10 x 14'10 deck above 29'6 x 14'10 carport. Close to Brooksbank elementary and Sutherland secondary schools, parks, shopping and recreation. Open by appointment only; social distancing in effect. Accepted offer.

Affordability Returning to the Real Estate Market - March 2020


aerial front 2433 mowat place a

 

It is still early in the year, but we are seeing a different North Vancouver real estate market.  First time Buyers are back and Buyers who want to move up are back.  The lower end of all markets is very active and that hasn’t been the case for the past two years.  What has changed?  Mortgage rates have dropped significantly.  Clients are securing 5 year fixed rates at 2.5%.  Residential real estate prices have been dropping for the past 3 years, and Buyers are returning because they see value in the market.

 See link below for North Vancouver Market Update

 https://www.pixisites.com/sitefiles/1321/library/february_2020_-north-vancouver.pdf

North Vancouver sales are up in all categories over the same period last year.  We are actually starting to see multiple offers for houses priced under $1,500k and most are selling for over the asking price.  Part of the reason for this is affordability.  The other factor is a low supply of houses in the over-all market.  Right now there are 255 detached active house listings.  At this time last year there were 393 houses on market.  Why has the supply of homes dropped?  There may be two reasons.  Homes are selling fast holding inventory levels down.  The other reason may be that Sellers, after receiving their latest property assessment notice, are not listing because assessed home values are down significantly for two years in a row, and they think that now is not a good time to list.

Another change in the market is that we are starting to see is a return of foreign buyers.  The economic and political issues facing Hong Kong have resulted in a steady stream of Hong Kong Buyers at my open houses and other REALTORS are saying the same thing.  My website has also seen a huge increase in traffic since the CO-VID 19 outbreak.  In February 2020, I had 5,783 hits to my website and 85% of them originated in China.

How will CO-VID 19 impact the market?  I guess time will tell but this is what I have experienced so far.  Lower traffic at open houses and the “lookie-loo’s” are not bothering to go out, and some Buyers are taking a break because of job/income concerns and financial concerns related to the stock market and their investments.  Many REALTORS/Sellers are only working with Buyers on an “appointment only” basis.  Real Estate Boards are recommending no open houses.  I think many Buyers and Sellers will just put their plans on hold until their lives get back to normal.

 Stay safe and healthy.

 Buying, Selling or investing in residential real estate give me a call.  Friendly introductions always welcome!

 

 Jeff Mulock    REALTOR®

Sutton Group West Coast Realty

www.jeffmulock.ca

(C)  604-512-2477

[email protected]

 

 

 



Recently Sold Listing 627 E 4TH STREET, North Vancouver, BC


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