Buyers and sellers are getting used to the new normal, and this is reflected in the May 2020 market report released by the Real Estate Board of Greater Vancouver (REBGV).
Although sales still lag, they are down 44%, they did rise sharply from April 2020 and prices are up slightly from May 2019.
According to Colette Gerber, REBGV Chair, "Home prices have been stable during the COVID-19 period. While we’re seeing a variety of long-term projections for the market, it’s critical to understand the facts and trends as they emerge."
She added that “Home sale and listing activity is down compared to typical, long-term levels and up compared to the activity we saw in April 2020. Home buyers and sellers are adapting today, becoming more comfortable operating with the physical distancing requirements that are in place in the market.”
Realtors registered only 1,485 residential property sales in May 2020 for the region. This represented a 43.7% decline from the same period last year in which 2,638 sales were recorded, and an increase of 33.9% from April 2020 when 1,109 homes were sold.
The number of detached properties sold was 534, 41.5% less than May 2019 (913 sales).
The number of apartments sold was 653, 47.6% less than May 2019 (1,246 sales).
The number of attached properties sold was 298, 37.8% less than May 2019 (479 sales).
May saw 3,684 new listings of detached, attached and apartment properties added to the Multiple Listing Service (MLS) in Metro Vancouver. This was a 37.1% decrease compared to the 5,861 homes listed in May 2019, and a 59.3% increase compared to April 2020 when 2,313 homes were listed.
“Home buyers and sellers are working with their REALTORS® to use new tools to complete different stages of the real estate transaction virtually,” Gerber said. “When in-person interactions are necessary, we’re working with our clients to follow the physical distancing requirements set out by WorkSafe BC and the provincial health officer.”
This ratio gives a better understanding of the relationship between supply and demand in the market. Downward pressure on home prices can occur when the ratio dips below 12% for a sustained period, and home prices can experience upward pressure when the ratio is above 20% for sustained periods.
For all property types, the ratio in May 2020 was 15%. When broken down by property types, the ratio was:
- 13.3% for detached homes - moving into seller market territory
- 18.9 % for townhomes - in seller market territory
- 14.8% for condominiums - in seller market territory
For the month of May 2020, The MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,028,400. This was virtually unchanged from April 2020 and a 2.9% increase when compared to May 2019.
The real estate landscape in Vancouver is changing. If you are buying or selling a home, you need to get in touch with an experienced real estate company such as ours to navigate this market during these unheard of times. Contact us by email or call us on 604 913 1000.