Vancouver housing market: a cautious, wait-and-see approach

The coronavirus may have changed the way we live, for now, but it hasn’t changed where or how people need to live. And while social distancing has resulted in some very creative – and successful – new ways of conducting business, at least one industry insider is suggesting a wait-and-see strategy for some new-home purchasers, especially first-time buyers.

Jackie Quiring, marketing manager at Captus Advertising, a multi-media, multi-service marketing agency servicing many real estate developers in Vancouver says its team has been working from home since mid-March and has adapted well, conducting business over Zoom and telephone calls. Many of its clients have turned to virtual tours of show homes and presentations centres. Video content creation has also been on the rise, she says, along with increased digital exposure.

However, with the reality that it’s not business as usual for real estate, Quiring says high levels of uncertainty and fear are motivating some buyers to wait on the sidelines before buying a new home.

“Many people have either already lost or are about to lose their jobs, savings and investments, making it difficult for them to secure a mortgage or even consider such a large purchase at this time,” Quiring tells New Home + Condo Guide. “Even though the Bank of Canada interest rates have been cut to stimulate the economy, mortgage rates haven't necessarily followed. The Canadian economy and global economies have been severely weakened by COVID-19, and this will definitely cause ripples throughout the real estate industry, creating long-lasting consequences. The COVID-19 crisis has also been a catalyst for change and innovation too, which means potentially positive changes to the status quo, and a new way of approaching real estate development and sales in the near future.”

Looking forward, Quiring advises anyone interested in buying a new home to wait until there is a clearer picture of how the real estate industry will look in the coming months.

“Despite signs of showing strong recovery in early 2020, the real estate market has been shaken by COVID-19, and that could result in prices falling in the next few months. A weakened economy, higher unemployment and unstable financial markets all suggest that homebuyers, especially first-time homebuyers, should exercise extreme caution. If you must buy, make sure you will be able to afford the mortgage payments should anything happen to your health or job. Read up on industry news, stay well informed and learn to research and critically analyze everything before committing to a property.”
Quiring is convinced the real estate industry and the economy will recover.

“It's just a matter of time,” she says. “When in doubt, wait it out. Be patient with the world as it begins its healing process. Stay positive and healthy.”