The pandemic of the coronavirus has shifted the world and its economy. Businesses are closed and homes are being affected by this crisis everyday. The same can be said in one of Canada’s largest cities, Vancouver– and more specifically, Vancouver’s real estate.
How Vancouver is Affected
The coronavirus has significantly slowed real estate sales in Vancouver. What was once a hustling and bustling city, is now a quiet solitude with unattended houses. The housing market has seen nearly a 40% decrease as compared to Vancouver real estate in April 2019. Regardless, housing prices have not faltered. In fact, that average price of a Vancouver home has actually gone up by 2.5% since the pandemic. Any major change in the prices of these homes could really affect homeowners, as Vancounver has always been known for having overpriced housing. Homeowners expect the prices of their homes to rise. Those who were hoping to get a discounted home in Vancouver will be disappointed– prices seem to be on the rise all across Canada.
The Average Cost of Vancouver Housing
The pandemic can stand to deter the average cost of houses in Vancouver. While the average cost of a home in Canada sits at $400,000 Canadian dollars, the average home in Vancouver is about 1.3 million– even condos average around $800,000. As it stands, Vancouver is one of the most expensive places to live in North America, coming only second to San Francisco. The median income in Vancouvers is around $70,000. Vancouver’s citizens are struggling to pay their high mortgages during this troubling time. Because so few can work and housing/renting costs are so high, people are not able to make payments on time.
What Vancouver is Doing
Luckily, Vancouver is not leaving its citizens to fend for themselves. They are offering potential benefits and rental reliefs of up to $500 CAD/month. Some landlords will also see a mortgage relief, too. The government has also been working with banks to possibly defer mortgage payments.
The Major Concern
The major concern within Vancouver real estate is that if the coronavirus lasts longer than three months, prices will start to drop. Vancouver is able to maintain its strong prices and low interest rates for now, but if they continue to lose revenue due to a lack of tourists and immigrants, they will have to make up for it elsewhere. Housing tax prices will increase for “satellite families” (families who do business outside of the country from home). The Vancouver real estate market is doing well for now, but it may not last if the pandemic doesn’t soon end.
Overall, the coronavirus has made a tremendous impact on real estate all over the world. Vancouver is particularly susceptible to the issues regarding real estate because it costs so much to live there. The prices are still on the rise in Vancouver, but that will likely not be the case if the pandemic lasts past June.
