Year in review: A look back at 2019

It’s been “an interesting year” according to many Metro Vancouver real estate insiders and developers.

No secret among buyers and sellers alike, prices across all housing types experienced a much-needed correction in 2019. The most recent report from the Real Estate Board of Greater Vancouver (REBGV) indicates the average price of a home in October was $992,900, down 6.4 per cent from October 2018. Single-family detached homes showed the steepest drop, falling 7.5 per cent to $1.4 million, while townhouses and condos both declined just under six per cent to $771,600 and $652,500, respectively.

However, REBGV numbers also indicate sales across the region were up 45 per cent from last October and 10 per cent above the 10-year sales average.

Tracie McTavish, executive director at rennie, says this escalating sales environment was something he predicted last spring based on information sourced by the company’s in-house research and statistics arm, rennie intel.

“We have 22 active sales centres, and over the last four months, we’ve seen a 50 per cent increase in both the number of visitors and the number of sales,” McTavish notes. “Our resale team is reporting they have almost no inventory available, and when they do, they’re more and more seeing correctly priced product go into multiple offers.”

Geographic reversal

The Fraser Valley south of the river appears to have become the star of the current market. “In 2009, downtown Vancouver came back first after the economic downturn,” says Scott Brown, president and CEO of Fifth Avenue Real Estate Marketing. “But in 2019, the suburbs were definitely more buoyant.”

Brown attributes this shift to lower prices plus the increasing urbanization and amenitization of places like Surrey, Langley and Abbotsford. “These used to be bedroom communities where you had to go somewhere else, probably downtown Vancouver, to get urban amenities. Now, even though Vancouver will likely always be viewed as ‘downtown,’ it’s not necessarily a place people aspire to live. Rather, they might only use those Vancouver amenities once or twice a month, because they have so much available where they live and at a much lower price point.”

Let’s get real about pricing

Frustration regarding government charges continued through 2019, with little optimism for a change in the foreseeable future. “In Vancouver, fees and taxes now account for 26 per cent of the cost of a new home,” notes Michael Ferreira, managing principal of Urban Analytics.

How’s this for a sobering taste of reality: The price of a snazzy new condo listed for $1.02 million includes a whopping $267,454 in taxes. “Why is this message not out there — especially when so many people get up in arms about the price of gas? Perhaps we should advertise the price without the tax,” Ferreira said at a recent presentation to the Urban Development Institute (UDI). “Here’s a condo that costs $750,000. But, oh wait, there’s tax on top of that.”

We’re still world class

Despite the challenges, though, industry people and consumers agree: Metro Vancouver will always be a place people want to live, work, and play.

“Vancouver consistently ranked among the top-three places to live anywhere in the world,” McTavish says. “You don’t wake up one morning and discover it isn’t a fantastic, beautiful city.”

It’s a sentiment Ferreira shares. “Always remember where we live… because it’s pretty awesome.”

Be sure to join New Home + Condo Guide next issue when we take a look ahead to 2020.