How did COVID-19 affect Metro Vancouver home buyer demand in 2020?
Demand is typically seasonal in the metro Vancouver housing market. Activity tends to peak in the spring and fall.
This year the spring market saw decreased activity due to COVID-19 restrictions. This led to pent up home buyer demand that returned to the market in the summer – a typically less busy time.
While home seller activity followed a similar trend, it didn’t stay balanced with home buyer demand. This balance is what determines price fluctuations.
To better understand the balance between supply and demand, we can look to the sales to active listings ratio.
When this ratio dips below 12 per cent for a sustained period, prices typically decline. We call this a buyer’s market.
If it surpasses 20 per cent for a sustained period, prices typically increase. We call this a seller’s market.
Take a look at the fluctuation over 2020: