METRO VANCOUVER MARKET REPORT
April residential home sales dropped predictably almost 40% due to Covid-19 restrictions but this doesn’t tell the whole story….
The mid-march decline in sales was predictable due to the COVID-19 restrictions. The graph above indicates that the 1122 number of sales in April was the lowest on record. The number of new listings also dropped to record low of 2312. However, the general news of relaxing restrictions has provided a glimpse of light at the end of the tunnel.
Despite the drop in new listings and sales, there is a reasonably healthy inventory of homes building up and a reasonable amount of interest and activity. The approximately 7 months of inventory and lower sales puts us in a buyer’s market where activity appears to be picking up.
Generally for April the benchmark prices of homes have been steady or slightly increasing.
Sales of detached homes in April 2020 reached 388, a 33.8 per cent decrease from the 586 detached sales recorded in April 2019. The benchmark price for detached properties is $1,462,100. This represents a 2.3 per cent increase from April 2019 and a 0.8 per cent increase compared to March 2020.
Sales of apartment homes reached 503 in April 2020, a 43.2 per cent decrease compared to the 885 sales in April 2019. The benchmark price of an apartment property is $685,500. This represents a 2.7 per cent increase from April 2019 and a 0.2 per cent decrease compared to March 2020.
Attached home sales in April 2020 totaled 218, a 39.1 per cent decrease compared to the 358 sales in April 2019. The benchmark price of an attached home is $796,800. This represents a 2.8 per cent increase from April 2019 and a 0.6 per cent increase compared to March 2020.
Sales to Active listing ratios
The sales-to-active-listings ratio is defined as the number of home sales divided-by the number of listed homes during the month. In April 2020 , the ratio was 10% for detached homes, 14.7% for townhomes, and 12.4% for apartments.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
“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.” — Colette Gerber REBGV President-elect
The following sales data and inventory data illustrate some of the trends
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,109 in April 2020, a 39.4 per cent decrease from the 1,829 sales recorded in April 2019, and a 56.1 per cent decrease from the 2,524 homes sold in March 2020.
Last month’s sales were 62.7 per cent below the 10-year April sales average and was the lowest total for the month since 1982.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 9,389, a 34.6 per cent decrease compared to April 2019 (14,357) and a 2.3 per cent decrease compared to March 2020 (9,606).
Metro Vancouver Market Report Summary April 2020
Author: Meryl Hamdillah, REALTOR with Sutton WestCoast Group.
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