This COVID-19 pandemic is creating a significant economic interruption. The effects are visible in the numbers for this week. 11 new active units against zero pending or closed leaving the inventory of urban condos at +11 this week. 3 of these “new” active units were pending units that are back on market at least two of which were the result of buyer’s losing jobs. This is the first time in a long while I have seen more than +10 units. Part of this could be the spring season which typically sees an increase in listing activity across the broad real estate market. The real test is how many buyers come to play amid this Corona Virus pandemic.
I did have several positive indicators over the weekend. I have a listing in Cascade Park that got massive response with a consistent flow of showings all day long on the first day of the listing. This also resulted in multiple offers above asking. Another client, a buyer, offered on a clean home in 4th Plain Village and that one had multiple offers well above asking as well.
So the real estate market will weather this storm, but the extent of the “collateral damage” due to the pandemic will ultimately depend on how long containment takes. Businesses cannot survive long under a shutdown. There is positive news in China: they have started to return to a more normal level of production. If this cycle pans out for the rest of the infected areas around the globe, containment may only take 90 days of which we are already 14 days in.
This week I saw some price reductions on units across the spectrum and that means opportunity for buyers in an otherwise tight inventory Downtown. Parkview has multiple units available including a ground floor unit which can be used as a live-work business. There is also a decent inventory at Northwynd in Columbia Shores.
The silver lining in the dark cloud of this economic situation is that opportunities to acquire an urban condo at a reduced price is occurring right now. If this pandemic turns out to be brief and some indications are that it will, this opportunity could be rather advantageous to buyers in the next 60 days.
Keep checking back to see the latest updates on urban projects in Vancouver and the urban condo market updates will continue every Monday.