Elizabeth McQueen - Global Real Estate Report - Luxury Condominiums

GLOBAL

R E A L E S TAT E

REVIEW L U X U RY C O N D O M I M I U M S P R E PA R E D E S P E C I A L LY F O R

JOHNATHAN AND ANGELA-MARIE WILLIAMS

PRESENTED BY

VA N C O U V E R W E S T S I D E

2020, a year full of challenges and uncertainty within every facet of our lives at home, at work, and within our communities. While we continue to collect and equip ourselves with the knowledge we need to keep ourselves safe, there is hope within the positive news emerging out of June’s real estate statistics, particularly as the average Canadian’s wealth is tied up in real estate.1 Our housing market has been resilient and remains balanced. But having said that, we would be remiss not to acknowledge there were still 2,500 total sales in June, meaning that 2,500 households made a significant financial commitment during the worst economic downturn we’ve experienced in almost a century. That is remarkable. And June marked the first month with a year-over-year increase in sales since pandemic restrictions came into place in mid-March.2 Furthermore, June’s sales count was significantly higher than in May, with transactions jumping by 64% on a month-over-month basis, and an 18% increase compared to June 2019. With the continued constrained inventory, prices rose both month-over-month and year-over-year.2 Though there is still much uncertainty ahead, we can look to these early positive signs that the market will rise again. For more information on today’s market, please do not hesitate to call.

- Elizabeth McQueen 1. Provided by Precondo.ca/canada-real-estate-statistics 2. Provided by The Real Estate Board of Greater Vancouver (REBGV), Statistics, Canada, and Rennie Marketing, LTD.

VA N C O U V E R W E S T S I D E MARKET SHOWCASE - ATTACHED HOMES

Luxury Benchmark: $2,000,000 MARKET TREND REPORT - 13 MONTHS Median Sales Price

Inventory

Solds

$4,200,000 $3,600,000

$3,425,000 $2,900,000 $2,190,000

134

$2,780,000

$2,600,000

$2,375,000

$2,588,900

$2,242,500

$2,475,000

$2,585,000

157

126

123

$3,175,000

120

103

7

9

7

9

Jun-19

Jul-19

Aug-19

Sep-19

105 13

Oct-19

101

109

91

94

106

86

8

7

5

10

7

3

9

2

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Data above provided by Real Estate Board of Greater Vancouver (REBGV) for the period of June 1st, 2019 through June 30th, 2020.

STATISTICS BY COMMUNITY

COAL HARBOUR CURRENT ACTIVES: 58 SALES IN LAST 13 MONTHS: 31 MEDIAN SALES PRICE: $3,175,000

DOWNTOWN CURRENT ACTIVES: 25 SALES IN LAST 13 MONTHS: 20 MEDIAN SALES PRICE: $2,577,500

WEST END CURRENT ACTIVES: 29 SALES IN LAST 13 MONTHS: 18 MEDIAN SALES PRICE: $2,315,000

YALETOWN CURRENT ACTIVES: 51 SALES IN LAST 13 MONTHS: 31 MEDIAN SALES PRICE: $2,598,900

C A N A D I A N AT T A C H E D M A R K E T S CALGARY, AB LUXURY BENCHMARK: $702,450

• Med ian Sales P rice: $79 8,78 8 • Med ian SP /LP : 97.3 2% • Med ian Days o n Market: 6 2 • Cu rren t Market Favo rs: Buyers

MARKET TREND REPORT - 13 MONTHS Median Sales Price $830,000

313

$775,000

307

$790,000

$820,000

$837,500

288

293

298

$768,750

Inventory $830,000

265 199

43 Jun-19

33 Jul-19

32 Aug-19

25 Sep-19

24 Oct-19

20

15

Nov-19

Dec-19

Solds

$812,500

$822,500

227

231

18 Jan-20

$762,000

$795,000

$790,000

215

215

272

26 Feb-20

248

22

7

20

Mar-20

Apr-20

May-20

Data above provided by Calgary Real Estate Board (CREB) for the period of June 1st, 2019 through June 30th, 2020.

3. Data provided by Calgary Real Estate Board (CREB)

$751,000

18 Jun-20

As we look to other regions in Canada, we see that no two cities have changed in the same way.

Calgary, which has already been dealing with a market downturn from falling oil prices, saw a year-over-year sales decrease of 8% in June, which is significantly less than the drop seen in April and May.3 Toronto saw a surge in listings in June as well as a jump in sales similar to June 2019, proving that this city has weathered this storm well.

Those looking to invest in this market should be comforted in knowing that over the past five years, Toronto real estate has held up better than the stock market! Using S&P as a benchmark, Toronto condos have outperformed both in gross return and in resilience through COVID-19.4

TORONTO, ON LUXURY BENCHMARK: $915,000

• Med ian Sales P rice: $1,140,608 • Med ian SP /LP : 98.64% • Med ian Days o n Market: 13 • Cu rren t Market Favo rs: Sellers

MARKET TREND REPORT - 13 MONTHS Median Sales Price $1,165,000

608

$1,133,000

$1,100,000

$1,150,000

$1,160,000

$1,125,000

599

Jun-19

203

Jul-19

173

Aug-19

$1,157,900

$1,125,000

591

$1,085,000

251

Sep-19

228

Oct-19

194

Nov-19

530

483

427

383 247

$1,150,000

Solds $1,130,000

$1,147,000

715

637

561

559

$1,200,000

Inventory

489

396 277

107

Dec-19

Jan-20

251

179

139

64 Feb-20

Mar-20

Apr-20

130

May-20

Data above provided by Toronto Real Estate Board (TREB) for the period of June 1st, 2019 through June 30th, 2020.

4. Provided by Precondo.ca/canada-real-estate-statistics

Jun-20

PA C I F I C C O A S T AT T A C H E D M A R K E T S

Traveling down south to the United States, these flourishing cities along the Pacific Ocean are each as influential as they are desirable for investment and fulltime residency. Overall, there is hopeful news along the pacific coast, with most cities seeing some recovery. For those looking to invest, low interest rates, mild climates, and thriving cultural districts make these cities popular choices for a new home.

Seattle, a technological hub known for its thriving food and arts scenes, has seen massive growth in the last several years. The luxury condo market has seen a sluggish start to spring sales, though the continual increase in inventory should help in the summer months.

San Francisco took a steep early hit from COVID-19 and was one of the first areas to issue strict stay at-home-orders. The measures seem to have paid off, particularly in the luxury condo market, where surging listings and sales are catching up to 2019’s figures.

The vast greater Los Angeles area has not quite seen large recovery numbers yet, likely due to the significant rise in reported cases causing a re-closing of more social establishments. In these markets, the silver linings are that today’s buyers, who are facing increased restrictions and safety measures, are truly serious and motivated, providing a more productive environment.

Further south in Orange County and San Diego, there is good news for sellers.

Both luxury condo markets are seeing increases in sales, which coupled with reduced inventory, translates to seller’s markets.

SEATTLE, WA LUXURY BENCHMARK: $900,000

• Med ian Sales P rice: $1,210,398 • Med ian SP /LP : 98.70% • Med ian Days o n Market: 3 4 • Cu rren t Market Favo rs: Buyers

MARKET TREND REPORT - 13 MONTHS Median Sales Price $1,235,891

$1,253,975

$1,335,346

$1,358,003

$1,300,544

Inventory

$1,286,762 $1,050,000

120

113

124

112

Jun-19

20 Jul-19

$1,143,248

$1,174,000

$1,249,950

Aug-19

$1,137,500

114

97

20

$1,149,950

118 73

33

$1,060,000

Solds

25

10 Sep-19

Oct-19

19

8 Nov-19

60

Dec-19

71

59

Jan-20

26

22

15

Feb-20

84

83

17

11

Mar-20

Apr-20

14

May-20

Jun-20

Data above provided by NWMLS for the period of June 1st, 2019 through June 30th, 2020.

SAN FRANCISCO, CA LUXURY BENCHMARK: $1,900,000

• Med ian Sales P rice: $2,299,16 3 • Med ian SP /LP : 100.2 0% • Med ian Days o n Market: 2 2 • Cu rren t Market Favo rs: Balanced M arket

MARKET TREND REPORT - 13 MONTHS Median Sales Price $2,577,500 $2,249,000

$2,200,000

$2,200,000

157

152 120

Jun-19

34

Jul-19

$2,374,500

$2,300,000

136

107

97 48

$2,353,125

Inventory

$2,265,000

Solds

$2,417,500

39

36

Aug-19

Sep-19

Oct-19

26

Nov-19

Dec-19

22 Jan-20

$2,300,000

$2,202,500

163

141 94

78

32

$2,200,000

139

124 85

46

$2,250,000

32

32

Feb-20

Mar-20

18

9

Apr-20

May-20

Data above provided by SFAR MLS for the period of June 1st, 2019 through June 30th, 2020.

32 Jun-20

L O S AN GELES

BEACH CITIES, CA

LUXURY BENCHMARK: $1,100,000

• Med ian Sales P rice: $1,455,712 • Med ian SP /LP : 98.82% • Med ian Days o n Market: 2 2 • Cu rren t Market Favo rs: Balanced M arket

MARKET TREND REPORT - 13 MONTHS Median Sales Price $1,430,000

$1,500,000

69

60

Jun-19

Jul-19

$1,490,000

229

220

215

208

$1,510,500

62

Aug-19

$1,390,000

169 63

59

$1,400,000

Solds

$1,492,000

$1,500,000

$1,538,250 $1,379,000

$1,330,000

$1,464,500

266

215

Sep-19

$1,500,000

Inventory

Oct-19

166

148

133 59

47

Nov-19

Dec-19

Jan-20

52

36

33

Feb-20

210

201

183

44

Mar-20

Apr-20

51

26 May-20

Jun-20

G R EATER

LOS ANGELES CITY, CA LUXURY BENCHMARK: $992,799

• Med ian Sales P rice: $1,2 64,8 85 • Med ian SP /LP : 98.29% • Med ian Days o n Market: 2 8 • Cu rren t Market Favo rs: Buyers

MARKET TREND REPORT - 13 MONTHS Median Sales Price $1,292,500

$1,189,000

403

391

$1,225,000

386

$1,290,000

384

$1,175,000

381

$1,255,000

Inventory $1,300,000

350

Jun-19

90

Jul-19

79

Aug-19

81

Sep-19

73 Oct-19

70

77

Nov-19

Dec-19

$1,247,500

75 Jan-20

$1,355,000

60 Feb-20

$1,445,000 $1,260,000

87

Mar-20

$1,159,500

437

402

347

311

307

285

265

68

$1,250,000

Solds

51 Apr-20

27 May-20

28 Jun-20

Data for Los Angeles, Orange County, and San Diego provided by CRMLS for the period of June 1st, 2019 through June 30th, 2020.

ORANGE COUNTY, CA LUXURY BENCHMARK: $766,148

• Med ian Sales P rice: $9 43 ,827 • Med ian SP /LP : 9 8.27% • Med ian Days o n Market: 35 • Cu rren t Market Favo rs: Sellers

MARKET TREND REPORT - 13 MONTHS Median Sales Price $926,500

$966,500

$905,000

$930,000

$980,000

$935,000

Inventory

Solds

$936,000

$902,500

$925,000

337

344

339

$954,500

$954,750

$999,000

$955,000

625

590

545

148

Jun-19

141

124

Jul-19

515

Aug-19

445

133

Sep-19

107

Oct-19

462

444

413

144

101

Nov-19

Dec-19

127

106

Jan-20

462

369

Feb-20

141

90

78 Mar-20

Apr-20

66 May-20

Jun-20

SAN DIEGO, CA LUXURY BENCHMARK: $685,000

• Med ian Sales P rice: $868,12 5 • Med ian SP /LP : 97.8 8% • Med ian Days o n Market: 3 3 • Cu rren t Market Favo rs: Sellers

MARKET TREND REPORT - 13 MONTHS Median Sales Price

$861,000

$870,000

666

688

130 Jun-19

$959,900

681

120 Jul-19

157

Aug-19

$850,000

$871,250

$905,530

607

598

574

117 Sep-19

136 Oct-19

118 Nov-19

Inventory

$877,000

$860,000

444

453 136

Dec-19

99 Jan-20

Solds

$860,000

$897,000

525

572

125 Feb-20

154

Mar-20

$806,450

$832,500

$835,000

632

618

608

94

67

Apr-20

May-20

145 Jun-20

— I R E L A N D — M A R K E T

W AT C H

Our partner in Ireland, John Fogarty, Regional Owner for RE/MAX Ireland, recently gave us a brief overview of the Ireland market. He mentions that between April and May, the average home list price rose 3.7%, a huge shift for just one month.

He clarifies, “but that was only partly offsetting the fall of 5.5% seen between March and April. A fall of more than 5% is unprecedented,” adding that the 200712 crash was the only other drop to come close.

Fogarty explains that May’s rebound is less indicative of a rebound and more “Indications from activity of a better explanation of April’s drop. and sales over the last two “April’s sellers were - understandably weeks are that the market - nervous and uncertain. That has come back with a uncertainty had moderated slightly bang and pent up demand in May, so sellers in that month were, keeping selling prices on average, less nervous about what really strong.” the future will bring, not that May was a return to normality in the market.”

Fogarty goes on to mention that in Ireland as a whole, inventory is down over 70%, “but clearly, even in a thin market, there was a different air in May than in April.” As far as offering any future predictions for the rest of 2020, Fogarty is optimistic. “It will be interesting to see how this translates into a sale market that will have to find its feet again, but indications from activity and sales over the last two weeks are that the market has come back with a bang and pent up demand is keeping selling prices really strong.”

— I T A L Y — M A R K E T

W AT C H

Reporting from Italy, specifically in the Italian Lakes area (Lake Maggiore, Lake Como, and Lake Garda), Joanne “With close proximity to Barley of The RE/MAX Collection Luxury Milan, Barley mentions that Lakeview, also has a positive outlook. ‘buyers from this market “Although these are delicate times, it are looking to invest in is looking positive for the luxury home properties outside of the market with foreign buyers still keen to city in order to enjoy the invest in the Italian Lakes. We foresee quality lifestyle offered.” a drop of no more than 10% in the number of transactions, and only a 5% drop in selling prices in the luxury home market, which we are confident will improve by the second quarter 2021.”

For buyers who are interested in purchasing or investing a luxury holiday rental, the market is strong, with rentals in high demand. With close proximity to Milan, Barley mentions that “buyers from this market are looking to invest in properties outside of the city in order to enjoy the quality lifestyle offered. Independent villas with gardens, outdoor pools, or lake access are the most requested, alongside lake view apartments with large terraces offering outdoor space.” As with luxury markets across the globe, buyers are also invested in finding a property that emphasizes wellness - swimming pool, spa, and gym facilities top the list.

“The key benefit to purchasing your home on the Italian Lakes is to own your personal claim to ‘La Dolce Vita.’ The quality of lifestyle here is envied all over the world. The Italian Lakes are close to Milan, Switzerland, the mountains, and its mild climate means that one can enjoy all the seasons,” says Barley.

2-1012 Beach Avenue Vancouver, BC V6E 1T7

Elizabeth McQueen

604.377.4321 RIBC, IRES, RE/MAX Crest Realty

Elizabeth@ElizabethMcQueen.com www.ElizabethMcQueen.com www.LuxuryGlobalEstates.net Follow me on Twitter: @elizabetmcqueen

What are Buyer’s Expectations in a New Home?

Buyers reported that the following aspects held more importance to them in light of the virus:

Smart Technology

Dedicated Spaces

Home Office

Wellness

No one is denying that the spread of COVID-19 has had an impact on buyer confidence in the real estate market. However, a new study shows that many buyers still want to buy, with 30% reportedly looking at available listings more often than before their search was impacted. 20% of buyers reported expediting their home-buying timeline, citing low interest rates as their motivation. While buyers are still looking for modern conveniences such as smart home technology and wellness spaces, today’s luxury buyers are trending towards dedicated spaces for work and play over multi-use flex spaces.

Johnathan and Angela-Marie, Though buyers are being cautious, the drive to own a home is still alive and well. Now more than ever, you need an experienced real estate agent who can help guide you through a successful transaction. For a private consultation, call me today at 604.377.4321.

Published by REAL Marketing (REM) | www.REALMarketing4you.com | 604.841.1739 | © 2020 This is not intended to solicit properties already listed for sale nor intended to cause a breach in an existing agency relationship. E&OE Covered.