The Bounce Back!
Greater Vancouver real estate market shows its resiliency!!!
The Short, the Quick, the Easy summary
SALES
Resiliency and bounce-back can be used to describe the status of real estate in Greater Vancouver. Sales surged 33.9% (1,485) in May after Aprils' shock to COVID-19 (1,109 homes sold). This is an accreditation to an informed industry of problem solvers , collaborative Buyers and Sellers, and the strength and willingness to forge ahead alongside other industry professionals tied to real estate (property managers, lawyers, inspectors, lenders).
Overall, our sales volumes in May were 43.7% lower than in May 2019 and are 54.4% below the 10-year average.
"Home buyers and sellers are working with their REALTORS® to use new tools to complete different stages of the real estate transaction virtually," REBGV Chair, Colette Gerber said. “When in-person interactions are necessary, we’re working with our clients to follow the physical distancing requirements set out by WorkSafeBC and the provincial health officer."
How does last months sales break down?
Recognizing we are not in 'normal' conditions, statistic focus will be month-to-month until a regular rhythm in real estate activity is back in place.
1) Sales of detached homes in May'20 reached 534, 37.6% increase from the 388 detached sales recorded in April'20.
2) Attached(townhouse) totalled 298, a 36.7% increase compared to the 218
sales in April '20.
3) Sales of condos homes reached 653 in May '20, a 29.8% decrease compared to the 503 sales last month (March '20).
INVENTORY - Properties for Sale
The total number of residential homes for sale(9,927) is a 32.4% decrease compared to May '19, and a 5.7 increase from April '20.
We all expect the spring to be the explosion of real estate volume; new properties for sale and Buyers out and shopping. New listings in May '20 (3,684) were 37.1 decrease from May '19(5,861) but a big bounce back from April '20 with a 59.3% increase!
We can see a disparity of increase of sales (33.9%) and # of new listings increase (59.3%). This tells us that there will be more selection for Buyer and more competition for Sellers.
Our 2nd most important stat at this time is the listing-to-sales ratio. Our benchmarks are 12 and 20. When The ratio goes below 12, for continuous months, we are generally in a Buyer's market where prices can come down. When the ratio rises above 20 for continuous months, we are in a Seller's market where prices can rise.
The ratio for the property types are:
15 (all properties combined) - compared to April'20 - 11.8
13.5 (detached homes) compared to April'20 - 10
18.9 (townhouses) compared to April'20 - 14.7
14.8 (apartments) compared to April'20 - 12.4
What does this mean?
The ratios are currently much closer to a Buyer's market at the moment. However, as these ratios are pushing to higher values, they are trending towards a Sellers market.
Prices
All property types: Virtually Unchanged from April '20. 1.4% increase over the last 3 months, and 2.9 increase from May'19
Now that we are clearly not in 'normal' conditions... what is the new normal?
- Realtors - Must Hustle!
- Sellers - Be the best Seller you can be. Be ready for low offers from Buyers looking for a deal.
- Buyers - Interest rates are low low low
- REBGV Sourced Summary
If you are thinking of selling in 2020, reach out to me, and lets talk about COMPETITION, INVENTORY and TIMING!
Fraser Valley Real Estate Update
Number of new listings coming onto the market fell even faster than sales in April - the market remains stable in the Fraser Valley
The Fraser Valley Real Estate Board (FVREB) processed a total of 805 sales on its Multiple Listing Service® (MLS®) in May, an increase of 17 per cent compared to sales in April and a decrease of 47 per cent compared to the 1,517 sales during
May of last year.
Chris Shields, President of the Board, observes, “This is an encouraging sign. Real estate is an essential service and it’s one of the most important economic drivers in BC’s economy.
Similar disparity of more new listings to increase of sales in May. This will lead to more options for Buyers.
Sales
Detached homes have seen a 9% increase (290)in sales volumes compared to April '20.
Attached Townhouses have seen a 11.5% increase (223) in sales compared to last month (April'19).
Condos saw a sales increase of 27.3% (191) compared to April '20.
Condo sales are the big success story in the Fraser Valley!
Inventory
The Fraser Valley Board received 2,207 new listings in May, a 56 % increase compared to April’s intake of 1,416 new listings and a 38 % decrease compared to May'19. May finished with 6,454 active listings, an increase of 8 % compared to April’s inventory and a decrease of 24 % from May '19.
Prices
Average HPI Price Index for ALL property types decreased by 2.1% from April '20.
- FVREB sourced summary
Considering COVID - 19 What does this mean?
As a Seller - Do you want the public in your home? Leverage digital marketing efforts such as virtual tours. Accept Subject to Viewing offers. Consider lockbox options allowing flexibility in showing times.
As a Buyer - will Sellers be allowing Buyers and the public into their homes? Traditional Open houses are NOT an option during the state of emergency in BC. Only private showings are permitted. Virtual open houses & tours are happening! Sellers & Buyer agents may require masks, gloves in order to create a safe environment for all.
Real estate has been deemed an essential service. Realtors are ready to find safe solutions to make transactions for our clients (Buyers and Sellers) happen.
Here is my recent
Blog on COVID-19 and how we can respond in the real estate sector in Vancouver
ATTENTION FUTURE SELLERS
Greater Vancouver - The sales-to-active-listing ratio is rising for all property types towards a Sellers environment. The decrease in sales volumes in each month builds up more and more 'potential' buyers looking to transact. However, be wary of the eye of the storm and the limited positive economic indicators for the next 6 months.
Fraser Valley - New inventory levels have surpassed the increase of sales. This can create more competition for Sellers.
If you are thinking of selling in 2020, reach out to me, and lets talk about COMPETITION, INVENTORY and TIMING!
