In this Spring edition of the Fifth Dimension, we chronicle the sustained growth in the new multifamily market since the onset of the global pandemic over a year ago.
From a market perspective, the start to 2021 included generating the highest total quarterly sales recorded since the Second Quarter five years ago. An incredible 6,651 sales were posted. During this period: the highest quarterly High Rise sales were recorded in two and half years; the highest quarterly Low Rise sales were posted in five years; and the highest number of Townhomes sold in a quarter ever.
What a difference a year makes. This time last year we were in the midst of a “valley of despair” regarding market conditions with the first signs of hope with respect to a quick recovery yet to surface. You will recall as the spring continued on and folks tuned into the daily three o’clock news feed, our industry for the most part moved to virtual engagement with prospective home buyers. The prospective buyers definitely engaged, lead by end user Townhome shoppers.
As the Spring progressed, we participated in an Urban Development Institute panel sharing perspectives on what to expect through the remainder of 2020 and into 2021. At that time we went on the record stating that clearly COVID-19 was not going away and that we have had to adapt and will continue to have to adapt through 2021. We did indicate buyer demand was showing early signs of acceleration and predicted that it would continue to improve. We stated that the level of market recovery and timing of said improvement in the second half of 2020 could actually surprise people. Approximately 15,000 sales have been recorded in the past year and over a third of these occurred in the first 90 days of 2021. It is safe to say that our ‘surprise’ prediction was pleasantly an understatement. That being said, we did not anticipate the supply issue to exponentially become a major issue again and we did not anticipate the new multifamily price escalation that has occurred due in part to recent and significant inflation with respect to development and construction costs.
There is a similar pattern occurring in the Okanagan and on Vancouver Island. For instance, in the past six months in Kelowna and the surrounding area, more new multifamily homes have sold than in all of 2020. In addition, a “recreational real estate renaissance” has started and we predict a hot summer in the interior. If you are interested in learning more about these regions, visit epicres.com to access our market report entitled On The Mark. We are also supporting our partners at The Condo Group as they develop a companion report for the Greater Victoria market. Here comes the sun. Regards,
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