GLOBAL
R E A L E S TAT E
REVIEW L U X U RY C O N D O M I M I U M S P R E PA R E D E S P E C I A L LY F O R
JOHNATHAN AND ANGELA-MARIE WILLIAMS
PRESENTED BY
VA N C O U V E R W E S T S I D E
2020, a year full of challenges and uncertainty within every facet of our lives at home, at work, and within our communities. While we continue to collect and equip ourselves with the knowledge we need to keep ourselves safe, there is hope within the positive news emerging out of June’s real estate statistics, particularly as the average Canadian’s wealth is tied up in real estate.1 Our housing market has been resilient and remains balanced. But having said that, we would be remiss not to acknowledge there were still 2,500 total sales in June, meaning that 2,500 households made a significant financial commitment during the worst economic downturn we’ve experienced in almost a century. That is remarkable. And June marked the first month with a year-over-year increase in sales since pandemic restrictions came into place in mid-March.2 Furthermore, June’s sales count was significantly higher than in May, with transactions jumping by 64% on a month-over-month basis, and an 18% increase compared to June 2019. With the continued constrained inventory, prices rose both month-over-month and year-over-year.2 Though there is still much uncertainty ahead, we can look to these early positive signs that the market will rise again. For more information on today’s market, please do not hesitate to call.
- Elizabeth McQueen 1. Provided by Precondo.ca/canada-real-estate-statistics 2. Provided by The Real Estate Board of Greater Vancouver (REBGV), Statistics, Canada, and Rennie Marketing, LTD.
VA N C O U V E R W E S T S I D E MARKET SHOWCASE - ATTACHED HOMES
Luxury Benchmark: $2,000,000 MARKET TREND REPORT - 13 MONTHS Median Sales Price
Inventory
Solds
$4,200,000 $3,600,000
$3,425,000 $2,900,000 $2,190,000
134
$2,780,000
$2,600,000
$2,375,000
$2,588,900
$2,242,500
$2,475,000
$2,585,000
157
126
123
$3,175,000
120
103
7
9
7
9
Jun-19
Jul-19
Aug-19
Sep-19
105 13
Oct-19
101
109
91
94
106
86
8
7
5
10
7
3
9
2
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Data above provided by Real Estate Board of Greater Vancouver (REBGV) for the period of June 1st, 2019 through June 30th, 2020.
STATISTICS BY COMMUNITY
COAL HARBOUR CURRENT ACTIVES: 58 SALES IN LAST 13 MONTHS: 31 MEDIAN SALES PRICE: $3,175,000
DOWNTOWN CURRENT ACTIVES: 25 SALES IN LAST 13 MONTHS: 20 MEDIAN SALES PRICE: $2,577,500
WEST END CURRENT ACTIVES: 29 SALES IN LAST 13 MONTHS: 18 MEDIAN SALES PRICE: $2,315,000
YALETOWN CURRENT ACTIVES: 51 SALES IN LAST 13 MONTHS: 31 MEDIAN SALES PRICE: $2,598,900
C A N A D I A N AT T A C H E D M A R K E T S CALGARY, AB LUXURY BENCHMARK: $702,450
• Med ian Sales P rice: $79 8,78 8 • Med ian SP /LP : 97.3 2% • Med ian Days o n Market: 6 2 • Cu rren t Market Favo rs: Buyers
MARKET TREND REPORT - 13 MONTHS Median Sales Price $830,000
313
$775,000
307
$790,000
$820,000
$837,500
288
293
298
$768,750
Inventory $830,000
265 199
43 Jun-19
33 Jul-19
32 Aug-19
25 Sep-19
24 Oct-19
20
15
Nov-19
Dec-19
Solds
$812,500
$822,500
227
231
18 Jan-20
$762,000
$795,000
$790,000
215
215
272
26 Feb-20
248
22
7
20
Mar-20
Apr-20
May-20
Data above provided by Calgary Real Estate Board (CREB) for the period of June 1st, 2019 through June 30th, 2020. 3. Data provided by Calgary Real Estate Board (CREB)
$751,000
18 Jun-20
As we look to other regions in Canada, we see that no two cities have changed in the same way. Calgary, which has already been dealing with a market downturn from falling oil prices, saw a year-over-year sales decrease of 8% in June, which is significantly less than the drop seen in April and May.3 Toronto saw a surge in listings in June as well as a jump in sales similar to June 2019, proving that this city has weathered this storm well. Those looking to invest in this market should be comforted in knowing that over the past five years, Toronto real estate has held up better than the stock market! Using S&P as a benchmark, Toronto condos have outperformed both in gross return and in resilience through COVID-19.4
TORONTO, ON LUXURY BENCHMARK: $915,000
• Med ian Sales P rice: $1,140,608 • Med ian SP /LP : 98.64% • Med ian Days o n Market: 13 • Cu rren t Market Favo rs: Sellers
MARKET TREND REPORT - 13 MONTHS Median Sales Price $1,165,000
608
$1,133,000
$1,100,000
$1,150,000
$1,160,000
$1,125,000
599
Jun-19
203
Jul-19
173
Aug-19
$1,157,900
$1,125,000
591
$1,085,000
251
Sep-19
228
Oct-19
194
Nov-19
530
483
427
383 247
$1,150,000
Solds $1,130,000
$1,147,000
715
637
561
559
$1,200,000
Inventory
489
396 277
107
Dec-19
Jan-20
251
179
139
64 Feb-20
Mar-20
Apr-20
130
May-20
Data above provided by Toronto Real Estate Board (TREB) for the period of June 1st, 2019 through June 30th, 2020. 4. Provided by Precondo.ca/canada-real-estate-statistics
Jun-20
PA C I F I C C O A S T AT T A C H E D M A R K E T S
Traveling down south to the United States, these flourishing cities along the Pacific Ocean are each as influential as they are desirable for investment and fulltime residency. Overall, there is hopeful news along the pacific coast, with most cities seeing some recovery. For those looking to invest, low interest rates, mild climates, and thriving cultural districts make these cities popular choices for a new home. Seattle, a technological hub known for its thriving food and arts scenes, has seen massive growth in the last several years. The luxury condo market has seen a sluggish start to spring sales, though the continual increase in inventory should help in the summer months. San Francisco took a steep early hit from COVID-19 and was one of the first areas to issue strict stay at-home-orders. The measures seem to have paid off, particularly in the luxury condo market, where surging listings and sales are catching up to 2019’s figures. The vast greater Los Angeles area has not quite seen large recovery numbers yet, likely due to the significant rise in reported cases causing a re-closing of more social establishments. In these markets, the silver linings are that today’s buyers, who are facing increased restrictions and safety measures, are truly serious and motivated, providing a more productive environment. Further south in Orange County and San Diego, there is good news for sellers. Both luxury condo markets are seeing increases in sales, which coupled with reduced inventory, translates to seller’s markets.
SEATTLE, WA LUXURY BENCHMARK: $900,000
• Med ian Sales P rice: $1,210,398 • Med ian SP /LP : 98.70% • Med ian Days o n Market: 3 4 • Cu rren t Market Favo rs: Buyers
MARKET TREND REPORT - 13 MONTHS Median Sales Price $1,235,891
$1,253,975
$1,335,346
$1,358,003
$1,300,544
Inventory
$1,286,762 $1,050,000
120
113
124
112
Jun-19
20 Jul-19
$1,143,248
$1,174,000
$1,249,950
Aug-19
$1,137,500
114
97
20
$1,149,950
118 73
33
$1,060,000
Solds
25
10 Sep-19
Oct-19
19
8 Nov-19
60
Dec-19
71
59
Jan-20
26
22
15
Feb-20
84
83
17
11
Mar-20
Apr-20
14
May-20
Jun-20
Data above provided by NWMLS for the period of June 1st, 2019 through June 30th, 2020.
SAN FRANCISCO, CA LUXURY BENCHMARK: $1,900,000
• Med ian Sales P rice: $2,299,16 3 • Med ian SP /LP : 100.2 0% • Med ian Days o n Market: 2 2 • Cu rren t Market Favo rs: Balanced M arket
MARKET TREND REPORT - 13 MONTHS Median Sales Price $2,577,500 $2,249,000
$2,200,000
$2,200,000
157
152 120
Jun-19
34
Jul-19
$2,374,500
$2,300,000
136
107
97 48
$2,353,125
Inventory
$2,265,000
Solds
$2,417,500
39
36
Aug-19
Sep-19
Oct-19
26
Nov-19
Dec-19
22 Jan-20
$2,300,000
$2,202,500
163
141 94
78
32
$2,200,000
139
124 85
46
$2,250,000
32
32
Feb-20
Mar-20
18
9
Apr-20
May-20
Data above provided by SFAR MLS for the period of June 1st, 2019 through June 30th, 2020.
32 Jun-20
L O S AN GELES
BEACH CITIES, CA
LUXURY BENCHMARK: $1,100,000
• Med ian Sales P rice: $1,455,712 • Med ian SP /LP : 98.82% • Med ian Days o n Market: 2 2 • Cu rren t Market Favo rs: Balanced M arket
MARKET TREND REPORT - 13 MONTHS Median Sales Price $1,430,000
$1,500,000
69
60
Jun-19
Jul-19
$1,490,000
229
220
215
208
$1,510,500
62
Aug-19
$1,390,000
169 63
59
$1,400,000
Solds
$1,492,000
$1,500,000
$1,538,250 $1,379,000
$1,330,000
$1,464,500
266
215
Sep-19
$1,500,000
Inventory
Oct-19
166
148
133 59
47
Nov-19
Dec-19
Jan-20
52
36
33
Feb-20
210
201
183
44
Mar-20
Apr-20
51
26 May-20
Jun-20
G R EATER
LOS ANGELES CITY, CA LUXURY BENCHMARK: $992,799
• Med ian Sales P rice: $1,2 64,8 85 • Med ian SP /LP : 98.29% • Med ian Days o n Market: 2 8 • Cu rren t Market Favo rs: Buyers
MARKET TREND REPORT - 13 MONTHS Median Sales Price $1,292,500
$1,189,000
403
391
$1,225,000
386
$1,290,000
384
$1,175,000
381
$1,255,000
Inventory $1,300,000
350
Jun-19
90
Jul-19
79
Aug-19
81
Sep-19
73 Oct-19
70
77
Nov-19
Dec-19
$1,247,500
75 Jan-20
$1,355,000
60 Feb-20
$1,445,000 $1,260,000
87
Mar-20
$1,159,500
437
402
347
311
307
285
265
68
$1,250,000
Solds
51 Apr-20
27 May-20
28 Jun-20
Data for Los Angeles, Orange County, and San Diego provided by CRMLS for the period of June 1st, 2019 through June 30th, 2020.
ORANGE COUNTY, CA LUXURY BENCHMARK: $766,148
• Med ian Sales P rice: $9 43 ,827 • Med ian SP /LP : 9 8.27% • Med ian Days o n Market: 35 • Cu rren t Market Favo rs: Sellers
MARKET TREND REPORT - 13 MONTHS Median Sales Price $926,500
$966,500
$905,000
$930,000
$980,000
$935,000
Inventory
Solds
$936,000
$902,500
$925,000
337
344
339
$954,500
$954,750
$999,000
$955,000
625
590
545
148
Jun-19
141
124
Jul-19
515
Aug-19
445
133
Sep-19
107
Oct-19
462
444
413
144
101
Nov-19
Dec-19
127
106
Jan-20
462
369
Feb-20
141
90
78 Mar-20
Apr-20
66 May-20
Jun-20
SAN DIEGO, CA LUXURY BENCHMARK: $685,000
• Med ian Sales P rice: $868,12 5 • Med ian SP /LP : 97.8 8% • Med ian Days o n Market: 3 3 • Cu rren t Market Favo rs: Sellers
MARKET TREND REPORT - 13 MONTHS Median Sales Price
$861,000
$870,000
666
688
130 Jun-19
$959,900
681
120 Jul-19
157
Aug-19
$850,000
$871,250
$905,530
607
598
574
117 Sep-19
136 Oct-19
118 Nov-19
Inventory
$877,000
$860,000
444
453 136
Dec-19
99 Jan-20
Solds
$860,000
$897,000
525
572
125 Feb-20
154
Mar-20
$806,450
$832,500
$835,000
632
618
608
94
67
Apr-20
May-20
145 Jun-20
— I R E L A N D — M A R K E T
W AT C H
Our partner in Ireland, John Fogarty, Regional Owner for RE/MAX Ireland, recently gave us a brief overview of the Ireland market. He mentions that between April and May, the average home list price rose 3.7%, a huge shift for just one month. He clarifies, “but that was only partly offsetting the fall of 5.5% seen between March and April. A fall of more than 5% is unprecedented,” adding that the 200712 crash was the only other drop to come close. Fogarty explains that May’s rebound is less indicative of a rebound and more “Indications from activity of a better explanation of April’s drop. and sales over the last two “April’s sellers were - understandably weeks are that the market - nervous and uncertain. That has come back with a uncertainty had moderated slightly bang and pent up demand in May, so sellers in that month were, keeping selling prices on average, less nervous about what really strong.” the future will bring, not that May was a return to normality in the market.” Fogarty goes on to mention that in Ireland as a whole, inventory is down over 70%, “but clearly, even in a thin market, there was a different air in May than in April.” As far as offering any future predictions for the rest of 2020, Fogarty is optimistic. “It will be interesting to see how this translates into a sale market that will have to find its feet again, but indications from activity and sales over the last two weeks are that the market has come back with a bang and pent up demand is keeping selling prices really strong.”
— I T A L Y — M A R K E T
W AT C H
Reporting from Italy, specifically in the Italian Lakes area (Lake Maggiore, Lake Como, and Lake Garda), Joanne “With close proximity to Barley of The RE/MAX Collection Luxury Milan, Barley mentions that Lakeview, also has a positive outlook. ‘buyers from this market “Although these are delicate times, it are looking to invest in is looking positive for the luxury home properties outside of the market with foreign buyers still keen to city in order to enjoy the invest in the Italian Lakes. We foresee quality lifestyle offered.” a drop of no more than 10% in the number of transactions, and only a 5% drop in selling prices in the luxury home market, which we are confident will improve by the second quarter 2021.” For buyers who are interested in purchasing or investing a luxury holiday rental, the market is strong, with rentals in high demand. With close proximity to Milan, Barley mentions that “buyers from this market are looking to invest in properties outside of the city in order to enjoy the quality lifestyle offered. Independent villas with gardens, outdoor pools, or lake access are the most requested, alongside lake view apartments with large terraces offering outdoor space.” As with luxury markets across the globe, buyers are also invested in finding a property that emphasizes wellness - swimming pool, spa, and gym facilities top the list. “The key benefit to purchasing your home on the Italian Lakes is to own your personal claim to ‘La Dolce Vita.’ The quality of lifestyle here is envied all over the world. The Italian Lakes are close to Milan, Switzerland, the mountains, and its mild climate means that one can enjoy all the seasons,” says Barley.
2-1012 Beach Avenue Vancouver, BC V6E 1T7
Elizabeth McQueen
604.377.4321 RIBC, IRES, RE/MAX Crest Realty
Elizabeth@ElizabethMcQueen.com www.ElizabethMcQueen.com www.LuxuryGlobalEstates.net Follow me on Twitter: @elizabetmcqueen
What are Buyer’s Expectations in a New Home? Buyers reported that the following aspects held more importance to them in light of the virus:
Smart Technology
Dedicated Spaces
Home Office
Wellness
No one is denying that the spread of COVID-19 has had an impact on buyer confidence in the real estate market. However, a new study shows that many buyers still want to buy, with 30% reportedly looking at available listings more often than before their search was impacted. 20% of buyers reported expediting their home-buying timeline, citing low interest rates as their motivation. While buyers are still looking for modern conveniences such as smart home technology and wellness spaces, today’s luxury buyers are trending towards dedicated spaces for work and play over multi-use flex spaces. Johnathan and Angela-Marie, Though buyers are being cautious, the drive to own a home is still alive and well. Now more than ever, you need an experienced real estate agent who can help guide you through a successful transaction. For a private consultation, call me today at 604.377.4321. Published by REAL Marketing (REM) | www.REALMarketing4you.com | 604.841.1739 | © 2020 This is not intended to solicit properties already listed for sale nor intended to cause a breach in an existing agency relationship. E&OE Covered.