Befitting from its status as one of the nation’s powerhouse markets, Vancouver saw the pace of new home sales accelerate in the second half of 2020, with overall activity posting notable year-over-year gains.
In its latest market report, Altus Group said that low interest rates and underlying local demand drove total new home sales up to 10,904 transactions, representing a 37% annual gain.
The bulk of the activity was seen in the single-family segment, with quarterly sales more than doubling the Q4 2019 level and annual sales reaching the highest reading since 2016.
“The trend seen in Vancouver towards strength in suburban regions relative to the urban core is similar to the patterns seen elsewhere in Canada, with both Calgary and the Greater Toronto Area experiencing more demand outside of the downtown regions,” Altus said.
The condo apartment sector also continued to improve in Q4, with quarterly sales surging by 76% annually and total 2020 sales ending up 8% higher than the year prior.
Altus stressed that on the whole, the trends paint a promising picture for the Vancouver market.
“While there are still plenty of headwinds moving forward, including elevated COVID-19 case counts, government restrictions, rising rental vacancies, falling rents and competition from the resale market, new openings improved in the fourth quarter and generated more activity in the market which may provide some momentum for this year,” Altus said.