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REBGV Market Update For April 2020 – April Home Sales In Metro Vancouver Lowest Since 1982.

Last month life as we knew it, ground to a halt because of COVID-19, and so did Metro Vancouver’s real estate market. This was reflected in The April 2020 market report released by the Real Estate Board of Greater Vancouver (REBGV).

“Predictably, the number of home sales and listings declined in April given the physical distancing measures in place. People are, however, adapting. They’re working with their realtors to get information, advice, and to explore their options so they’re best positioned in the market during and after this pandemic,” said Colette Gerber, REBGV president-elect.

She added, “We’re seeing more innovation in today’s market, with realtors using different technology to showcase homes virtually, assess neighborhood amenities with their clients and handle paperwork electronically.”

Home Sales

April 2020 sales were 62.7% below the 10 year April average and were the lowest total for the month since 1982.

There were 1,109 residential property sales. This represented a 39.4% decrease from the 1,829 sales in April 2019 and a decrease of 56.1% from March 2020 when 2,524 homes were sold.

The number of detached properties sold was 388, 33.8% less than April 2019.

The number of apartments sold was 503, 43.2% less than April 2019.

The number of attached properties sold was 218, 39.1% less than April 2019.

Home Listings

April saw a plunge in new home listings. There were only 2,313 newly listed properties for sale on the Multiple Listing Service (MLS) in Metro Vancouver. This was 59.7% lower than the 5,742 new homes listed in April 2019, and a 47.9% decrease when compared to March 2020 when 4,436 homes were listed.

The total number of homes listed for sale in April decreased to 9,389 – a figure well below the inventory of April 2019 when 14,357 homes were listed and a 2.3% decrease compared to the 9,606 homes listed in March 2020.

Sales-To-Active-Listings Ratio

This is a good indication of the supply and demand forces in the market. Downward pressure on home prices can occur when the ratio is below 12% for a sustained period, and there is upward pressure when the ratio is above 20% for a number of months.

For all property types, the ratio in April was 11.8%. When broken down by property types, the ratio was:

  • 10% for detached homes
  • 14.7% for townhomes
  • 12.4% for condos

Home Prices

The MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,036,000 in April. This was 2.5% higher than April 2019 and 0.2% higher than March 2020. Despite ongoing concerns about the economy and millions of Canadians out of work, the average price of a home in Vancouver went up. 

Paul Kershaw, UBC professor and founder of Generation Squeeze, says the rising prices, as sales fall is worrisome. 

“During the COVID-19 pandemic, our entire economy has been upended, our housing system has been hit with a massive shock, and no one knows where all of this will go,” he said.

Click here for a full report.

Working with our real estate professionals will enable you to set realistic expectations that help you achieve your real estate goals. If you are looking to buy or sell a home, contact us by email or call us on 604 913 1000.

 

 

 

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REGBV Report April 2019 – The Trend of Reduced Demand And Increased Supply Still Prevails In The Market.

The latest Real Estate Board of Greater Vancouver (REGBV) report on the April 2019 real estate market, shows that buyers are reluctant to get into the market and sellers are being forced to be creative. Product that is staying on the market for more than a month is seeing discounts that were unheard of 2 years ago. For a decade it has been a sellers market. This has changed.

Residential property sales totalled 1,829 in April 2019, a 29.1% decrease from the 1,829 sales recorded in April 2018 and a 5.9% increase from the 1,727 homes sold in March 2019.

“Government policy continues to hinder home sale activity. The federal government’s mortgage stress test has reduced buyers’ purchasing power by about 20 per cent, which is causing people at the entry-level side of the market to struggle to secure financing.. Suppressing housing activity through government policy not only reduces home sales, it harms the job market, economic growth and creates pent-up demand.” Ashley Smith the REBGV President said. She added,” “There are more homes for sale in our market today than we’ve seen since October 2014. This trend is more about reduced demand than increased supply. The number of new listings coming on the market each month is consistent with our long-term averages. It’s the reduced sales activity that’s allowing listings to accumulate.”

The total number of properties listed on MLS system in Metro Vancouver in April was 14,357  – a 46.2% increase compared to the 9,822 properties listed in April 2018, and a 12.4% increase compared to the 12,744 properties listed in March 2019.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,008,400. This represents an 8.5 per cent decrease over April 2018, and a 0.3 per cent decrease compared to March 2019.

The all-important sales-to-active listings ratio for April 2019 was 12.7%. The general rule of thumb is that there is downward pressure on home prices when the ratio dips below 12%, and upward pressure on home prices when the ratio surpasses 20% over several months.

April 2019 Sales Stats:

Detached properties                       586                  (807 – April 2018)

Apartments                              885                  (1,308 – April 2018)

Attached properties                        358                  (464 – April 2018)

Click here to obtain a full report.

In these market conditions, you need to work with a real estate company that has the experience and know how on getting you the right home. Contact us and let one of our real estate professionals obtain the best results for you.

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REBGV Market Update May 2019 – Modest Bounce In May, But Sales Remain Below Historical Averages

The latest report released by the Real Estate Board of Greater Vancouver (REBGV) showed that sales in May 2019 crossed the 2,000 units sold for the first time this year.

However, homebuyer demand remains below historical averages.

“High home prices and mortgage qualification issues caused by the federal government’s B20 stress test remain significant factors behind the reduced demand that the market is experiencing today” remarked Ashley Smith, REBGV president.

Home Sales

Residential home sales totaled 2,638 in May 2019, a 6.9% decrease from 2,833 sales recorded in May 2018 and a 44% increase from homes sold in April 2019. Last month’s sales were 22.9% below the 10 year May sales average. This was the lowest total for the month since 2000.

Detached homes – 913 sales in May 2019 – 926 sales in May 2018

Apartments – 1,246 sales in May 2019 – 1,431 sales in May 2018

Attached homes – 479 sales in May 2019 – 476 sales in May 2018

Benchmark price of all residential homes $1,006,400 in May 2019.

New Listings

There were 5,861 new listings for May on the Multiple Listing Service (MLS). This represents an 8.1% decrease compared to the 6,35 homes listed in May 2018 and a 2.1% increase compared to the 5,724 homes newly listed in April 2019.

Total Listings

The number of listed homes across Metro Vancouver also edged upward 2.3% between April and May, to 14,685, marking the highest number of properties for sale in the region since September 2014. In April 2019 there were 14,357 listings and in May 2018 there were 11,292 home listings.

Sales-To-Active Listings ratio

This ratio explains the relationship between supply and demand that influences price. When the ratio is around or below 12% for a sustained period, then there is downward pressure on prices, and when it is above 20% for a sustained period, there is upward pressure.

Detached homes – 14.2%

Townhomes – 20%

Condominiums – 12%

If you are looking to get into this market before prices start escalating, we are offering a wide range of homes suitable for any budget. Visit our website and browse our wide range of listings.

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