Real Estate Lawyer Predictions For 2020
Our real estate lawyers at Morris Law have been following this year’s housing recovery from the stagnant year of 2018 sales. But even as sales have started to pick up in the last couple of months, does this imply a recovery of the Vancouver real estate market in 2020?
Here’s what our real estate lawyers have to consider, and predict for 2020:
Existing Real Estate Trends
Let’s look at some facts:
2018 was a historically bad year for detached home sales.
2019 was not a historically bad year for detached home sales.
November numbers from the Real Estate Board of Greater Vancouver (REBGV) show that residential sales have recovered by 55% compared to numbers in 2018. The average sales price of a condo in November was $670k.
As of December 2019, home sales are climbing in Vancouver. In terms of price, the average sales price of a home has climbed by 30% since the summer.
Based on the above information, we know that we’re seeing an upward trend in recent data. However, this is a small improvement following an entire year of stagnant sales. There is not enough data to indicate that prices will continue to recover in the coming months.
What To Expect In The 2020 Housing Market
Our real estate lawyers have been looking at long-term trends. Even though we’ve recovered from poor sales in 2018, the overall trend is still slow – detached home sales haven’t reached 1,000 sales in a month since 2017.
Real estate analysts in Vancouver from Eitel Insights have predicted that a drop in detached home prices will occur in 2020, with condo prices following suit to hit $525k within 2 years. That’s a prediction that the average condo price will fall by nearly $150,000, down from the existing average of $670k.
What’s to note here is the timeline, though. Historically, condo prices follow detached housing, lagging by around a year. Even if we expect to see a drop in prices, we’ll likely observe changes occurring in the detached housing market far before condos follow suit.
So, while we won’t know whether prices will recover or drop further in 2020, we can expect condo prices to change at a much slower rate than detached housing.
What Does This Mean?
For buyers, 2020 could be an opportunity to get into the market.
If the housing market falls to 2015-2017 prices, increased inventory could allow potential homeowners to enter a market that’s been extremely competitive in the past.
Homeowners that aim to stay in their homes could potentially be in a good situation, as they’ll pay less property tax with lower property values.
In either case, it’s important to be prepared and know what you want in advance. Understanding your situation allows you to be flexible in the face of change. Where the market goes is anyone’s guess, but at Morris Law, we believe in preparation. Our real estate lawyers are trained to mitigate real estate risks, so you can focus on making big real estate decisions, knowing that the small details will be taken care of by our legal real estate experts.
Contact our real estate lawyers today – let’s start a conversation on your legal needs and how we can help you.