Demand remains strong in Western Canada, and likely to intensify once the pandemic eases
Despite the widespread mobility restrictions brought about by the coronavirus outbreak, the frequency of homebuying inquiries has gone up in Western Canada, according to RE/MAX.
“We are already seeing inquiries from home buyers up 5% from pre-COVID levels,” said Elton Ash, executive vice president (Western Canada) with RE/MAX. “To see the price drop that CMHC is suggesting is unrealistic.”
Ash was referring to the Crown corporation’s dire predictions of a “historic recession” this year that will lead to an 18% fall-off in home prices and a 29% sales decline – forecasts that multiple industry players have contested.
“Yes, there has been some economic pain, but not to the extent that CMHC is suggesting,” Ash said, pointing at Vancouver’s robust pre-pandemic sales as a likely sign of strong sales recovery down the line.
Pent-up demand for homes might become the defining feature of top markets like BC and Ontario immediately after the crisis has passed, RE/MAX said in early May.
Figures from the British Columbia Real Estate Association (BCREA) supported these projections: In April, the province’s benchmark housing price posted a 7.8% annual increase, while overall inventory fell by almost 25%.
“We should be happy sales only fell by 50% when you consider this is a global pandemic,” BCREA Chief Economist Brendon Ogmundson told Business in Vancouver.
