“Economists expect BC’s real estate market to make a strong comeback once physical distancing measures are lifted”. What a positive note to start this blog!
This was reported by CBC although its headline was not quite as optimistic – “BC home sales to fall by 40 per cent but comeback is likely”.
The article goes on to report that BC is entering into a deep recession, characterized by falling housing sales and a shrinking economy, according to a new report from the BC Real Estate Association. It finds that the strict social and physical distancing measures by public health are having an immediate impact on the province. However, based on past modeling of recessions in BC, economists are hopeful the province will be able to stage a comeback once restrictions are gradually lifted.
Brendon Ogmundson, chief economist for the BCREA, believes that home sales will drop by up to 40 percent in April compared to the same time last year and that it will carry into the summer as physical distancing measures continue.
The report says history shows that the housing market bounces back after recessions, and given historically low interest rates and pent-up demand, housing sales and prices are expected to recover in 2021.
So far the Whistler real estate market has experienced a more dramatic drop in April with sales down 80% compared to April of last year. However, we are also optimistic that the real estate market in Whistler will bounce back. Typically we see an increase in sales in the fall as buyers/investors want to be using and/or renting their properties over the lucrative ski season – so we are more hopeful that a recovery in the Whistler real estate market will start in the fall and continue through 2021.
In the meantime, we are trying hard to support our local businesses and restaurants by ordering take-out and delivery, and supporting our local health workers by showing our support every evening at 7pm, and by staying home. The strength and courage of our essential workers is so inspirational. We wish them and you continued health and safety.
