Strong Growth of Sales and Listings (23% More Sales Compared to Last Year)
July 2020 Real Estate Market figures reflected a steady and strong sales increase over the last years. The sales have increased by 23% compared to July 2019. Also, the sales were 9.4% higher than the average July sales of the last 10 years.
There was as well a huge increase in the number of new listings, which reflected a 29% increase over the last year.
House Prices Increased
The overall home price index showed a 4.5% increase over the last year. This can be considered as a strong increase after a flat price index over the course of the COVID-19 period.
Contrary to the previous months, the biggest price increase was in detached homes with 5%. Townhomes and condos showed similar increases with 3.7% and 4.2% respectively.
the prices and the number of sales and listings show that the real estate market is currently back to its track to the pre-COVID period.
Market Trend (Where will the prices go?)
The below chart shows the sales to listings ratio. This ratio is a very good indicator of where the prices may go. the overall ratio increased to 25.9% in July, from a 15% ratio in May 2020. June 2020 results were 21%.
When over 20% ratio is exercised a couple of months, it is considered a seller’s market and more likely to lead an increase in prices in the market. So, after lower ratios in the market in the last couple of months, now we see a stronger market indicator for a possible seller’s market.
Especially the ratio increase in the townhomes are significant.
As the figures show, now there are more buyers in the market and the prices are going up. The performance in the following months will highly be base on how the pandemic will affect the market. We are lucky to be in BC, one of the lowest affected regions in the world, let’s hope this continues in the days to come.
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Article source: Jovi Realty Inc.