West Vancouver Housing Market Outlook (2021)
West Vancouver real estate market for buyers in 2021, prices expected to rise 3%
West Vancouver real estate expects a buyers market in 2021. Given the COVID-19 restrictions restricting the activities of overseas buyers, the region expects a shift back to local buyers who are driving activities. Low interest rates and low inventory levels are expected to have the greatest impact on the market in 2021. The average selling price in West Vancouver was down 1% to $ 1,949,881 in 2020 (January 1 – October 31) compared to $ 1,969,356 in 2019 (January 1 – December 31). The RE / MAX outlook for West Vancouver property in 2021 is an increase of 3% to approximately $ 2,008,377.43 across all property types.
Who is driving demand for real estate in West Vancouver?
Move-up buyers are currently driving demand in the West Vancouver real estate market. West Vancouver is made up of larger family homes and luxury homes, which were the most popular property types in 2020. Moving buyers hesitated as the West Vancouver market slowed dramatically in late 2018 and 2019. Buyers carefully watched pricing before making decisions.
First time buyers tend to be families looking for condos, although they typically don’t look to West Vancouver due to the higher prices. They are seen as a marginal part of the overall market.
The West Vancouver condominium market is primarily driven by retirees and downsizers. There is limited inventory and no new products, so sales remain stable depending on supply and demand. This remains one of the major challenges facing the West Vancouver housing market.
The West Vancouver luxury market is unaffected by COVID-19 as foreign buyers are primarily dominating the market. Due to international restrictions and COVID-19 restrictions, the activity of foreign buyers decreased drastically in 2020, which is expected to continue into the new year. The typical starting price for luxury real estate in West Vancouver is approximately $ 4,500,000, and demand for luxury real estate is expected to continue to grow through 2020 and remain the same through 2021.
West Vancouver’s hottest neighborhoods
The best-selling West Vancouver neighborhoods in 2020 were Ambleside, Dundarave, and West Bay. The neighborhoods are popular for their proximity to amenities, walkability, beach access, and waterfront views.
West Vancouver new building
The market for new builds in West Vancouver is very limited. Most products are pre-sold through developers, which limits access to numbers. The number of new homes being built in the West Vancouver market is small and prices for new homes are higher than resale prices.
Canadian housing market in 2021
Canadians are on the move. RE / MAX does not call this an “exodus,” but the relocation trend in the Canadian real estate market is real and only one focus of the RE / MAX 2021 Housing Market Outlook Report. RE / MAX Canada expects healthy house price growth at the national level. Moving and moving buyers are continuing to drive activity in many regions of the Canadian real estate market. A persistent and widespread shortage in the supply of apartments is likely to persist, which poses challenges for home buyers and pushes up price pressure.
Because of these factors, the outlook for 2021 RE / MAX 2021 for average home prices across the country is estimated at + 4% to + 6%. Here is the regional breakdown:
Further results of the report are:
- 35% of RE / MAX brokers say buyers from other cities and provinces will continue to trigger market activity in 2021
- 45% of RE / MAX brokers say aspiring buyers are likely to be a major driver of demand in the property market in 2021
- Half of Canadians (53%) are confident that Canadian real estate markets will remain stable in 2021
- 52% of Canadians believe real estate will remain one of the best investment opportunities in 2021
“Despite the tragic effects of the pandemic, our optimism about the strength of the Canadian real estate market has remained,” said Elton Ash, RE / MAX Regional Executive Vice President in Western Canada. “While buyer preferences have shifted significantly this year, we believe factors such as the supply problem, pent-up demand and historically lower interest rates will continue to fuel activity in 2021.”