Real Estate Market Update- APRIL 2020

Stable Prices Despite Less Transaction

A few days ago, the Greater Vancouver Real Estate Board (REBGV) released the April Greater Vancouver Real Estate Report. The following data are worthy of attention:

Turnover: The total number of home transactions in April was 1,109 units, a decrease of 39.4% compared to April last year and a significant decrease of 56.1% compared to March this year. The total number of house transactions in April decreased by 62.7% compared with the average transaction volume in April over the past decade. This April is the lowest volume since April 1982 in the Greater Vancouver area.

Base Price: The base price of the Great Vancouver house in April was $ 1,036,000, which was a 2.5% increase from April last year and a 0.2% increase from March this year. Among them, the benchmark price of detached houses is $ 1,462,100, an increase of 2.3% compared with April last year, and an increase of 0.8% compared with March of this year; the benchmark price of an apartment is $ 685,500, an increase of 2.7% compared with April of last year, compared with March this year It fell by 0.2%; the benchmark price of urban housing was $ 796,800, a 2.8% increase from April last year and a 0.6% increase from March this year.

New listings: There were 2,313 new listings in April, a decrease of 59.7% compared with April last year and a decrease of 47.9% compared with March this year. At present, the total number of listings in the Greater Vancouver area is 9,389, a decrease of 34.6% compared with April last year and a decrease of 2.3% compared with March this year.

Sales-to-sales ratio: The sales-to-sales ratio of houses in the Greater Vancouver area was 11.8% in April, which was a 14.5% decrease from March this year, and has generally become a buyer ’s market. The ratio of detached houses is 10.0%, the ratio of city houses is 14.7%, and the ratio of apartments is 12.4%.

Generally speaking, when the sales ratio exceeds 20%, there will be upward pressure on house prices. If the sales ratio is less than 12%, it belongs to the buyer’s market, and there is downward pressure on house prices. It is relatively stable between 12-20%. Independent houses have entered the buyer’s market, and apartments are also approaching the buyer’s market, which means that the possibility of housing prices falling is very high. For investors with cash on hand, the time to bargain is coming.

Many people often have some hesitation before the bargaining. They will consider whether it is really “in the end” now. What if house prices continue to fall sharply after the bargaining? However, in the Greater Vancouver area, similar concerns are unnecessary.

In any case, this new crown epidemic will pass sooner or later, and the volume of housing in the Greater Vancouver area will continue to rise over time. As a world-renowned Vancouver livable city, beautiful waters good scenery, is the world immigrants want to go, as long as the Vancouver diminished the charm, here it is still poised to attract immigrants, housing the “demand” will continue to increase This is the power that gives Vancouver housing prices a “bottoming”.

Base from the transaction data of the past 10 years, the average monthly transaction volume in the Greater Vancouver area should be around 2,500 units to meet the housing needs of local residents and immigrants. In the past two months, due to the outbreak of the new crown epidemic, local residents have temporarily shelved plans to purchase or exchange homes, and immigrants who were originally planning to land in Vancouver in the near future have also temporarily avoided sharp edges. Therefore, market demand has plummeted, which has led to some “The emergence of transactions.

However, once the epidemic has eased and BC has resumed work in full swing, these repressed demand for homes will spew out. Therefore, the demand of the housing market is only pushed back, not eliminated. If you have just the need to buy a property in Vancouver, you may wish to take this opportunity to actively look for listings in the market where sellers are eager to sell for special reasons, and there may be surprising prices waiting for you!

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Stay Home, Stay Safe!

CT Real Estate Group

Article source: Jovi Realty Inc. 

The real estate data of various cities in April are as follows: