25
Mar

COVID-19: AMID CRISIS, STABILITY IN RESIDENTIAL REAL ESTATE IN VANCOUVER

The unprecedented and profound impact covid-19 has had worldwide is extraordinary. Many Canadians are quickly adapting to a different way of life, glued to their televisions as the news moves faster than ever before.

The stock market is in full rollercoaster mode. The market suffered nearly a 1000-point loss just one day after, amid an emergency interest rate cut from the fed.  Numerous retailers in one of the largest shopping malls in Burnaby Metrotown have closed their doors including Nike, Lululemon, even McDonalds has closed it doors for takeout. Some local restaurants in Burnaby are still offering takeout services like Cactus Club Café. This will be the new norm until the foreseeable future.

There is volatility in the stock market, retail industry, restaurants and travel and hotel industry and other asset classes. The hotel industry is experiencing vacancy, cutting staff, and the worst yet may be to come. Local hotels in Burnaby and hotels in Kelowna are at about 10% occupancy. The Empress Hotel in Victoria, British Columbia has announced a temporary closure. The confidence in small business is at an all-time low.

Amid this volatility, there is stability in the asset class of residential real estate. Regardless of retail or stock market or other asset classes of the economy, every individual needs a home to live in; either ownership or rent. Recently News1130 published an article stating how the Vancouver real estate market is immune to Covid-19. With recent sales since the covid-19 crisis began, there has been little change in sales for homes under $1 million dollars. Although realtors are being asked to do business in a more “virtual” manner, the housing market has not seen a drastic decline. Sales are in the continuum in the residential real estate market curve,and data is not showing any steep declines. Real estate is a safer option to invest in and in the long run, the best investment while other asset classes like retail/hospitality are showing steep declines and uncertainty during a time where the public has halted consumption on unnecessary purchases. Residential homes, will always and have in the past remained a necessity.