40th Edition of The Fifth Dimension: Metro Vancouver’s New Home Market Report
A NEW DECADE ARRIVES
Fifth Avenue is a residential real estate sales and project marketing organization, joyfully celebrating 40 years of experience throughout 2020. Recently, Fifth Avenue released the 40th instalment of its market report entitled The Fifth Dimension. For over a decade, we have been chronicling the events and occurrences of the new multifamily market home market in Metro Vancouver. This is the concluding edition for the 2019 year and the tone-setter for the first year in the 20’s decade.
When we first started producing this report in 2010, a quarter with 2,500 sales or more, and a year with 10,000 units of supply was considered to be stellar. Over the decade those figures became 3,000 and 12,000, and 4,000 and 16,000 respectively. We envisioned growth but never imagined an annual sales figure of over 17,000 which was achieved in 2015 and 20,000 in 2016 followed by over 17,000 and 15,000 homes sold in the years to follow. During this time, we also chronicled over two years of consecutive 4,000 units sold per quarter. It is also worth noting the number of consecutive issues in which supply concerns were raised. Clearly this was a chronic issue of the decade that is set to carry over into the 20’s without a truly collaborative, private and public intervention.
As we enter 2020 we must note that the decade ended in a similar fashion to how the previous one ended, with sales of less than 10,000 units sold for the year – 7,758 sale to be exact. However, the underlying story is quite different than it was post global recession 2009.Another recurring topic of the decade pertained to government action and inaction. Industry pundits have been consistent in their cautions and criticisms and these voices came to a crescendo in 2019. These included critiques of the numerous taxes and increases in development charges such as the provincial foreign buyer’s tax, the Vancouver empty home tax, the federal mandated stress test, and additional NDP moves including the “school” or “not-so-school tax” and rent controls. A great deal has transpired in the past ten years. It’s worth a look back.
Now I am not the kind to live in the past. As we enter the 20’s, I am optimistic especially with respect to further emergence of the suburban markets and the role these markets will play overall. While I expect a positive decade ahead, I certainly accept the new reality we are in. These times are and will continue to be more volatile. Even with the solid fundamentals that buoy our market and inform our outlook for 2020, We are prepared for the ups and downs in general and particular market areas that are certain to come. Time will tell.
This report contains information and data not readily available to the public. Click here to download your copy of The Fifth Dimension.